Resales Decline

Existing-home sales declined 1.3% in June as the condominium market showed further deterioration and house price appreciation flattened out.The National Association of Realtors reported that sales of single-family homes, condominiums, and cooperatives fell from a seasonally adjusted annual rate of 6.71 million in May to 6.62 million in June. Condo and co-op sales declined by 5.5% in June, and condo prices are down 2.1% from the level recorded in June 2005. Single-family home sales slipped 0.9% in June, and single-family home prices are up 1.1% from those of a year ago. "The change in price performance is directly tied to housing inventories," NAR chief economist David Lereah said. Last year, the inventory of unsold homes was at a lean 4.4-month supply in June. Now there are 3.73 million existing homes on the market, representing a 6.8-month supply at the current sales pace.