New Home Sales Fall to Record Low Rate

New home sales plunged 33% in May to a record low rate, as a home-buying tax credit expired, the Commerce Department said Wednesday.

Sales fell to a record annual low rate of 300,000 units, Commerce said. Sales had risen to rose in April to a two-year high, in the final month of the home-buyer tax credit.

The rate was lower than economists’ forecasts of a rate in the 380,000 to 420,000 range, news services reported.

Sales fell in all regions, led by a 50% decline in the West.

Rising home sales can mean more business for flatbed trucking companies that haul building materials and dry van freight carriers that haul household appliances and furniture.

New home sales account for about 15% of residential real estate sales.