June Existing Home Sales Fall 5.4% to 4.37M Unit Rate

WASHINGTON - Existing home sales fell 5.4% in June to a seasonally adjusted 4.37 million-unit rate, after an upwardly revised 4.62 million rate in May, the National Association of Realtors announced Thursday.

Economists polled by Thomson Reuters had predicted 4.62 million sales in June.

The June rate represents the slowest pace in eight months, but is a 4.5% increase from June 2011. The sales rate has now been above the previous year's levels for 12 straight months, NAR Chief Economist Lawrence Yun said.

The median sales price rose to $189,400, a 7.9% gain from a year ago.

The inventory levels dipped 3.2% to 2.39 million existing homes, representing a 6.6-month supply at the current pace. Inventory was down 24% from the June 2011 level, when it was a 9.1-month supply.

Noting that the June sales figures came in below economist expectations, Yun said that "last-minute hiccups" associated with foreclosure sales could be delaying a significant percentage of sales as sellers look to make sure everything is in order before closing.

"They want to dot every 'i,' cross every 't,'" Yun said, adding that these delays were not happening until recently.

"I'm not too worried that somehow the housing market has lost momentum," he said. "The buying interest is there."

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