In May 2010, the expiring tax credits led to a record plunge in new home sales.
According to the Commerce Department, sales tumbled 33% to an annual pace of 300,000 from April.
The end of a tax incentive worth as much as $8,000 means the market will now be dependent on gains in employment, which are needed to lift incomes, brace confidence and contain foreclosures. A lack of inflation and concern over jobs and housing are among reasons Federal Reserve policy makers may reiterate a pledge to keep interest rates near zero.
Most analysts expected home sales to lose ground following the tax credits, but not by this much.
What do you think the rest of the year holds for home sales?
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