New homes sales report released Wednesday - - Jackson, MS

New homes sales report released Wednesday

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WASHINGTON (AP) - The government will report on new home sales for May on Wednesday.

Tuesday's reading on sales of previously-owned homes may have served as a warm-up, since it showed a surprising decline.

In the case of Wednesday's reading, economists are looking for a drop.

The National Association of Realtors says existing home sales were down more than 2 percent last month.

The drop came even as buyers could get government tax credits, in an effort aimed at boosting sales.

And nearly a third of sales in May were from foreclosures or other distressed properties.

That raises the risk that home prices could be heading down after stabilizing over the past year.

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