Buyers may ultimately be the beneficiary of the “May 2010 New Homes Sale Report”.

We are now sitting at over 45 days since the federal “Homebuyer Tax Credit” expired on April 30th and the "May New Home Sales Report” shows some fairly dismal figures for Home Builders.  For the first time in the past 11 months new home inventory has exceeded the 8month supply line coming in at an 8.5 month and new home sales volume fell nationally to 300,000 units, approximately a 32% decline, that represents the lowest record since 1963 when the Commerce Department started keeping records.

OK, you say, that sound pretty bad!  But maybe not if you look at it this way:

When new home inventories are up it actually benefits home buyers by putting pressure on the sellers to make better deals, and when new home sellers are making better deals it puts pressure on resale sellers to do the same.

Also consider interest rates, headlines are touting the lowest rates seen in a lifetime.  You can check out interest rates and how they have been falling since early May.  Mortgage Market Survey