U.S. News: Existing-Home Sales Fall; Backlog Shrinks
Sales of previously owned homes declined in August, but in a promising sign the backlog of unsold homes shrank.</br></br>Sales of existing homes fell 2.2% in August from the previous month to an annual sales pace of 4.91 million units, the National Association of Realtors said Wednesday. The data cover sales of homes, condominiums and townhouses.</br></br>The inventory of unsold houses fell to a 10.4-month supply at the current sales pace, compared with July's 10.9-month supply. The current inventory is still large, and many analysts say prices must fall even more to attract buyers. The median home price was $203,100 in August, down 9.5% from the year before.</br></br>"We would not expect to see any real stability in the housing market until we work off more of this inventory," said Wachovia Corp. economist Adam York in a note to clients.</br></br>Sales increased in parts of California, Florida and Nevada where subprime loans and foreclosures are heavily concentrated, the NAR said. Chief economist Lawrence Yun noted that sales of deeply discounted properties "are accounting for a disproportionately high level of sales in the current market" and helping to drive down the median sales price.