*DJ US Jul Existing Home Sales Dn 4.1% To 6.33 Mln Rate
*DJ Inventory Of Unsold US Homes Up To 7.3 Months Supply
WASHINGTON (MarketWatch) -- Sales of existing homes plunged 4.1% to a seasonally adjusted annualized rate of 6.33 million, the lowest since January 2004, the National Association of Realtors said Tuesday.
Economists were expecting a decline to 6.56 million, according to a survey conducted by MarketWatch.
The report shows a continued weakening in the housing market, with inventories up sharply while prices are softening. Sales are down 11.2% in the past year.
"Boom markets are cooling significantly," said David Lereah, chief economist for the realtors group. Sales fell in all four regions.
The housing market and the economy are "fragile," Lereah said. Some markets that never boomed are now weakening because of sluggish local economies, such as Michigan, Ohio and parts of the Northeast, he said.
"It's important for the Fed to understand how fragile the housing market is, and how fragile the economy is," Lereah said. "The economy impacts housing, and housing impacts the economy."
The inventory of unsold homes rose 3.2% to a record 3.856 million, a 7.3- month supply at the July sales rate, the highest since April 1993. The past year has seen the sharpest increase in inventories on record, Lereah said.
The median sales price has risen 0.9% in the past year to $230,000. It matches June for the weakest price growth in 11 years. Prices fell on a year-over-year basis in the West and the Northeast.
"Prices need to come down to bring back buyers," Lereah said.
Sales of condos rose 2.8% in July to 818,000. Sales of single-family homes fell 5% to 5.51 million. |
