Resales Decline

Sales of existing single-family homes fell 5.2% in January, but stayed above the 6 million mark for the seventh consecutive month.The National Association of Realtors reported that resales fell from a seasonally adjusted annual rate of 6.37 million in December to a 6.04 million rate in January. December resales were revised downward from 6.47 million. "We expected a modest dropoff in sales after a record-breaking year in 2003," NAR chief economist David Lereah told reporters. He blamed bad weather in the Northeast and the Midwest for some of the dropoff in sales. But he noted that the supply of homes is a constraint on sales in the Northeast. "I think supply is the biggest problem in the housing market, not demand," Mr. Lereah said. In the Midwest, job losses "may be inhibiting home buying," he said. Sales of previously owned homes fell 13.2% in the Midwest, 12.5% in the Northeast, and 5.7% in the West, and rose 2.0% in the South.