WASHINGTON—Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits. The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market. The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify. "We fear that the appetite to buy a home has disappeared alongside the tax credit," Paul Dales, U.S. economist with Capital Economics," wrote in a note. "After all, unemployment remains high, job security is low and credit conditions are tight." New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005. Analysts were startled by the depth of the sales drop. New-home sales plunge 33 pct with tax credits gone - The Denver Post As we see again--once those taxpayer hand-outs for cars and now homes stop--sales plummett. Obama's flood the basement economic policies are a miserable failure. The ONLY thing this President has done is gotten us into a 13 TRILLION dollar deficit--with is arrogant attitude that he can micro-manage this diverse economy. Now up to 13 TRILLION. How's all that hopey and changey working for ya?