May Home Sales Unexpectedly Fall 2.2 Percent

Boost from government incentives appears to be winding down

WASHINGTON - Sales of previously occupied homes dipped 2.2 percent in May, signaling that a boost from home-buying tax credits is fading sooner than expected.

Last month's sales fell from the previous month to a seasonally adjusted annual rate of 5.66 million, the National Association of Realtors said Tuesday. Analysts who had expected sales to rise expressed concern that the real estate market could tumble once the benefit of the federal incentives is gone entirely, starting next month.

Sales have climbed 25 percent from the 4.5 million annual rate hit in January 2009 — the lowest level of the recession. But they're still down 22 percent from the peak rate of 7.25 million in September 2005.

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