U.S. Aug. existing homes sales rise 2%

Sales of previously-owned homes rose 2% in August to a seasonally-adjusted annual rate of 7.29 million units, the National Association of Realtors said Monday. Sales in July were revised down to 7.15 million from 7.16 million reported earlier. August sales were up 7.8% from August 2004 and were the second highest on record.

The median home sales price rose 15.8% over a year ago to $220,000. Inventories of homes for sale rose 3.5% in August to 2.86 million, a 4.7 month supply and the most plentiful month's supply since November, 2003. David Lereah, NAR's chief economist, said, "Katrina has disrupted everything for us," and it may be several months before realtors will know the full impact of Katrina on the housing market.