Existing home sales fall for 4th month

The National Association of Realtors reported yesterday that sales of existing homes dropped by 3.8 percent in June to a seasonally adjusted annual rate of 5.75 million units. That is the slowest sales pace since November 2002, and the decline was about twice what had been expected.

The median price of an existing home edged up to $230,100, 0.3 percent more than a year ago. The median is the point where half the homes sold for more and half for less.

It was the first price gain in 11 months. Analysts, however, said they were looking for prices to fall further because of the high level of unsold homes.

For June, the median price of a single-family home rose by 0.1 percent and the price of a condo increased by 2.6 percent compared with a year ago.

"With inventories still way out of line, unless prices fall a lot more, the housing market will not turn around any time soon," said Joel Naroff, chief economist at Naroff Economic Advisors.

Separately yesterday, the Federal Reserve said in its so-called Beige Book report that the economy expanded in June and early July. But most Fed regions reported declines in residential construction and real estate activity.