Homebuilders Lose Confidence After Homebuyer Tax Credit Expires

It was the tax credit, after all. Or so it seems.

One of the timeliest leading indicators for real estate prices -- the homebuilder confidence survey published by the National Association of Home Builders/Wells Fargo -- dropped five points, or 22 percent, in June to a reading of 17. That's the lowest level since March, when the housing tax credit started pushing buyers into the market.

Mike Larson, real estate analyst at Weiss Research, points out it's also the biggest monthly drop since the depths of the recession in November 2008.

"We all knew there would be some kind of give-back after the homebuyer tax credit euphoria last spring," he tells AOL HousingWatch, "but it's a sizable drop and more than what economists were looking for."

Larson's view could be heard from other experts today: The consensus is that the housing market is back in the doldrums after a fake boost of demand.