WASHINGTON - Sales of existing US homes fell more heavily than expected in June, as the American property market continued its year-long slump, an industry survey showed Wednesday.
The National Association of Realtors (NAR) said existing home sales dropped 3.8 percent to an annualized pace of 5.75 million last month.
June`s sales pace was worse than predicted as most Wall Street analysts had forecast a lower sales clip of 5.90 million units last month. May sales were revised down to a rate of 5.98 million properties.
The association blamed the sales fall largely on edgy buyers being reluctant to commit to a property purchase.
Experts say increased home foreclosures and mortgage problems, particularly with loans granted to Americans with stretched finances, are roiling the US housing market.
The problems have dented Wall Street in recent months as some banks have witnessed sharp losses in mortgage-related securities holdings.
The report also showed the number of homes for sale across the United States declined last month, dropping 4.2 percent from May to a still high inventory of 4.20 million properties. That represents an 8.8-month supply at the current sales pace, according to the NAR.
The monthly snapshot showed that prices rose slightly despite falling sales.
The median sales price increased 0.3 percent to 230,100 dollars compared with June 2006.
The US property market has been in a downturn for over a year, partly amid a glut of homes for sale and as consumers have been buffeted by spiking gasoline costs.
The NAR report was released a day after Countrywide Financial, one of America`s biggest mortgage firms, announced a sharp plunge in its second quarter profits and said there was no immediate relief in sight for the distressed home market.
The latest NAR figures show existing home sales are a notable 11.4 percent below the 6.49 million-unit clip of June 2006.
07/25/2007 14:23 GMT