The Real Deal Miami

Slumping nationwide housing market toughens buyers

June 18, 2010 02:15PM

The housing market is suffering more than expected following the expiration of the government’s $8,000 tax credit. Preliminary nationwide data indicates the decline began last month right after the credit was no longer available, with sales dropping more than 20 percent from May 2009, the New York Times reported. Builders have also been affected, as construction of new homes in May dropped 17.2 percent from April, according to the Department of Commerce. Mortgage applications were down by a third in May compared to last year, according to the Mortgage Bankers Association. Amidst this slump, buyers are reportedly becoming pickier, with more deals falling through and less contracts being signed. [NYT]