Reply #34: Existing home sales drop to 7.16 million - down 2.6%

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7BA89165F9%2D9223%2D49EB%2DBEBE%2D361040F7E5A6%7D&siteid=mktw

WASHINGTON (MarketWatch) - Sales of previously owned U.S. homes fell 2.6% in July to a seasonally adjusted annual rate of 7.16 million, the third highest level ever, the National Association of Realtors said Tuesday.

Sales in June were revised up to a record 7.35 million from 7.33 million reported earlier.

July sales were up 4.7% from July 2004. "This is a big number any way you slice it," said David Lereah, chief economist for the real estate group.

Median sales prices rose 14.1% year-over-year to $218,000, the industry group said. A 14% price appreciation in a year "is not sustainable," Lereah said.

Inventories of homes for sale rose 2.6% in July to 2.751 million, a 4.6-month supply at the current sales pace. It's the largest inventory since May 1988, while the months' supply is the largest since November 2003.

"We are starting to see some air coming out of these balloons," Lereah said. "Inventories are starting to build," he said, which could put supply in better balance with demand, thus reducing pressure on prices.

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Sales were flat in the South, and fell 7.5% in the West, fell 3.3% in the Northeast and fell 1.8% in the Midwest.

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10:00am 08/23/05 U.S. JUNE EXISTING HOME SALES REVISED UP TO RECORD 7.35M

10:00am 08/23/05 U.S. JULY MEDIAN HOME PRICE UP 14.1% YEAR-ON-YEAR

10:00am 08/23/05 U.S. JULY HOME INVENTORY UP 2.6% TO 2.75M, MOST IN 17 YEARS

10:00am 08/23/05 U.S. JULY EXISTING HOME SALES FALL 2.6% TO 7.16M PACE