US existing home sales down in June

| July 21, 2011 | 0 Comments
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The US housing market remains depressed after figures have revealed sales of previously owned homes fell 0.8% on a monthly basis to a 7-month low, according to the National Association of Realtors (NAR).

The industry body said the fall in sales was attributed to contract cancellations with sales running at an annual rate of 4.77 million units – the lowest level since November 2010 and below forecasts of a rate of 4.93 million.

On an annual basis, sales were 8.8% lower, however, this compares with a month when the US Government’s tax credit incentive expired.

Demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.

Further house price falls are likely this year as high unemployment impacts negatively on the already weak housing market.

Meanwhile, NAR chief economist Lawrence Yun comments: “A variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month.

“Economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders,” Mr Yun added.

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