The National Association of Realtors reported today that Home Sales have taken a dive!

Pending Home Sales Plummet - July 1, 2010

Pending home sales dropped in May to the lowest level on record dating back to 2001, NAR reported this morning. The Pending Home Sales Index based on contracts signed in May plummeted 30 percent from April and is 15.9 percent below May 2009. The drop-off comes after three strong monthly gains as homebuyers rushed to take advantage of the tax credit, which expired April 30.

Pending sales tumbled in all four U.S. regions. In the Northeast, pending sales fell 31.6 percent in May and were 14.8 percent lower than a year ago. In the Midwest, the index dropped 32.1 percent and was 20.2 percent below May 2009. Pending home sales in the South fell 33.3 percent in May and were 14.4 percent lower than a year ago. In the West, pending sales dropped 20.9 percent during the month and were 15.1 percent below May 2009. Thu, Jul 1, 2010.

NAR chief economist Lawrence Yun says the tax credit helped stabilize housing prices. “Without the tax credit, there will be more aggressive price negotiations between Buyers and sellers. The key test on whether the housing market can stand on its own without stimulus medicine will depend critically on private sector job creation in the second half of the year. We’ll also keep a close eye on market conditions on the Gulf Coast,” Yun says.

Yun also noted that some local markets such as Portland, Maine, and Jacksonville, Fla., posted pending sales increases in May over last year without the tax credit.

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