Car sales rocketed after the government rolled out their “Cash for Clunkers” sales incentive, but then plummeted when it expired.
New home sales rebounded after the government rolled out tax credits for new home purchases, but have already started to fall in the face of a program end.
As a plugged-in reader correctly notes:
Even builders of more upscale homes have felt the impact of the looming deadline. That’s because those move-up buyers will have trouble selling their homes without the incentive of the credit.
The only surprising thing about the decline, that it seems to have been “unexpected.”
∙ U.S. New-Home Sales Fall as Credit Nears Expiration [Bloomberg]
∙ Whether Or Not Credits Moved The SF Market, Phase Out Hits Home [SocketSite]
∙ Clunker hangover knocks sales down at Chrysler, Ford, GM [USA Today]