New Homes Sales Plunges in May in Phoenix and Las Vegas

New Homes sales in May have fallen of a cliff  after the government tax credit programs expired. A survey of new home sales in Las Vegas and Phoenix have dropped. The survey by MetroStudy a real estate research firm in Houston,TX.

The study found sales in Las Vegas dipped more than 10%:

Signed contracts in Metrostudy’s Las Vegas subdivisions dropped 12 percent for the week ended May 24 from a year earlier. They climbed 220 percent in the last week of April, an indication of buyer interest in capturing the tax credit before it ended, Metrostudy said.

Las Vegas had the highest rate of foreclosure filings in the U.S. last year, with 12 percent of households receiving a notice, according to RealtyTrac.

Sales in Phoenix,AZ  crashed and burned to nearly 50%:

In Phoenix, contracts in the subdivisions surveyed by Metrostudy fell almost 49 percent for the week ended May 24 from the same period a year earlier, Hunter said.

San Diego new homes sales also fell:

Would-be buyers canceled about 40 percent of new home contracts in San Diego in May, up from 10 percent in April, the company said. Data on new signings in that city weren’t immediately available.

Bloomberg News has the rest of the story.

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