May 2010 provided our first month of data after an extensive 18-month tax credit party. And the hangover may have set in. The tax credit clearly propped up sales, so they predictably took a substantial dip a month after it expired. Pending Sales decreased 13.7 percent compared to last May, dropping to 9,527 purchase agreements signed, down a whopping 6,562 from last month. This represents the largest month-to-month decline in actual units pended since we have had available comparative date in 2003.
Keep in mind that closed sales will remain strong through the end of the June as buyers wrap up before the June 30 closing date deadline. In fact, they were up 11.7 percent over last year to 10.415 closed sales.
New Listings posted a decrease of 7.9 percent year-over-year, clocking in at 16,839 new homes on the market. This has brought inventory down 12.6 percent to 60,535 Active Listings, which has kept it near a balanced 6-month mark so far this year.
It remains to be seen whether the dip in buyer activity is a short-term effect of the credit deadline passing or a result of long-term changes in demand. Regardless, we expect a slow summer selling season.
