U.S. existing-home sales, depressed by credit market turmoil, fell 4.3 percent in August to their lowest level in five years, a realty association said.

Sales dropped to a seasonally adjusted annual 5.5 million units, the slowest pace since August 2002's 5.36 million annual pace, the National Association of Realtors said Tuesday.

July's rate was 5.75 million, the group said.

"The unusual disruptions in the mortgage market, including a significant rise in jumbo loan rates, resulted in a fairly high number of postponed or canceled sales, with many buyers having to search for other financing when loan commitments fell through," association Senior Economist Lawrence Yun said.

"Lower sales contributed to a buildup of unsold inventory," he said.

Housing inventories rose 0.4 percent to 4.58 million, representing a 10-month supply at the current sales pace, the association said. July showed a 9.5-month supply, revised from a previously estimated 9.6 months.

The median home price was $224,500 in August, up 0.2 percent from $224,000 in August 2006, the group said. July's median price was $228,700.

Sales dropped 9.8 percent in the West, 5.2 percent in the Midwest, 2.7 percent in the South and 2 percent in the Northeast. // Copyright 2007 by United Press International


Publication date: 26 September 2007   

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