Resales Slide in August

Sales of existing, single-family homes slid 3.7% in August as a result of the recent correction in the stock market, according to data released Friday by the National Association of Realtors.The NAR said existing, single-family homes sold at a seasonally adjusted annual rate of 4.73 million units in August, down from a record 4.91 million in July. Year over year, resales are up 10.5%. "The dip in numbers reflects a cautious correction in the market," said NAR president Layne Morrill. However, the trade group's consulting economist John Tuccillo said fluctuations in the market should ultimately have a positive impact on the real estate market. "The recent waves in the foreign markets have resulted in many investors' putting their money into U.S. Treasury bills, which has pushed bond yields down to extremely low levels," Mr. Tuccillo added. NAR is forecasting resales to top 4.70 million units in 1998, up from last year's record pace of 4.21 million sales. Meanwhile, the national median existing home price for August was $132,900, an increase of 4.2% from a year ago. The NAR's website address is http://nar.realtor.com.