Resales Cool Down in June

Sales of existing, single-family homes cooled down in June, falling 2.3% to an annualized rate of 4.72 million units, according to data released Monday by the National Association of Realtors.The NAR said the June resale rate showed a slight decline from May, when the sales pace stood at 4.83 million units. However, June's sales numbers are still 14.6% above the 4.12 million units recorded at this time last year. NAR president R. Layne Morrill said the decline was expected and does not reflect any slippage in the housing market. "The housing market is nothing short of robust despite the slight dip in June," Mr. Morrill added. "As with any product, when a healthy market pushes sales to record highs, it is the norm for activity to plateau and settle into a more consistent pace." The sales pace of 4.89 million recorded in March 1998 was the highest ever recorded since the NAR began tracking existing home sales 30 years ago. The NAR is forecasting existing home sales to end the year at around 4.54 million, which would be a 7.7% increase above last year's record total of 4.21 million. The trade group's consulting economist John Tuccillo told reporters that he expects the housing market to remain strong through the second half of this year thanks to a continued drop in mortgage rates. "I don't know if they will make it down to 6.5% by the end of 1998 but they are headed down," he said. Regionally, resales dropped 10.9% in the West and 5.6% in the Northeast, but rose 1.7% in the Midwest and 1.6% in the South. The NAR's website address is http://www.realtor.com.