Tax Credit Lag Hits HARD. Pending Home Sales Drop 30%

According to The National Association of Realtors' Pending Home Sales Index, the number of signed sales contracts dropped 30 percent in May. The plunge follows three months of gains driven by the homebuyer tax credit. Year-over-year, the index was down 15.9 percent. Lawrence Yun, NAR's chief economist, blamed the sharp decline on the rush to meet the tax credit deadline in April. Yun expects June's existing-home sales to remain elevated but to drop significantly in July and August. More here, here, here, and here.