Sales Down After Tax Credit Expires

The National Association of Realtors reported that its pending home sales index, a forward looking indicator based on signed contracts, fell 30% in May after a revised 6% increase in April. This was expected because the $8,000 federal tax credit expired April 30. Real Estate sales were up in the first quarter of 2010 because so many buyers took advantage of the tax credit.

The market is now at a more normal state.