Existing sales dropped 0.8% in June to a seasonally adjusted annual rate of 4.77 million, the third straight drop as a jump in contract cancellations led to lower sales figures, the National Association of Realtors reported Wednesday.
Sales in May were unrevised at 4.81 million.
Economists expected 4.95 million sales in June, according to the median estimate from Thomson Reuters.
Lawrence Yun, the NAR’s chief economist, said there was a disconnect in June between pending home sales and actual closings. The association only started recording cancellations last March, and the June rate was the highest since then. Yun said the economy most likely played a role in the high rate of cancellations.
The median sales price of existing home sales rose 0.8% from a year ago and 8.9% from May.
The months’ supply of homes for sale increased to 9.5 months, the highest level since November. The May months’ supply was revised lower to 9.1 months from 9.3 reported last month.
