Existing-Home Sales Decline,
Prices Drop, Inventories Rise

WASHINGTON -- Existing-home sales fell a fifth straight time during July, while inventories of unsold property climbed and prices dropped.

Home resales declined to a 5.75 million annual rate, a 0.2% decrease from June's revised 5.76 million annual pace, the National Association of Realtors said Monday. June's rate was originally estimated at 5.75 million.

The median home price was $228,900 in July, down 0.6% from $230,200 in July 2006. The median price in June this year was $229,200.

NAR economist Lawrence Yun said the housing market is holding on despite "temporary mortgage disruptions."

"Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months," Mr. Yun said. "Some buyers with contracts have been scrambling when loan commitments did not materialize at the last moment, while other potential buyers are simply waiting for the mortgage market to stabilize."

The July resales level was above Wall Street expectations of a 5.72 million sales rate for previously owned homes. The 5.75-million rate was the lowest since 5.73 million during November 2002.

The average 30-year mortgage rate was 6.70% in July, up from 6.66% in June, according to Freddie Mac.

Inventories of homes rose 5.1% at the end of July to 4.59 million available for sale. That represented a 9.6-month supply at the current sales pace. There was a 9.1-month supply at the end of June, revised from a previously estimated 8.8 months.

Regionally, existing-home sales were mixed. Sales fell 2.2% in the Midwest, rose 1.0% in the Northeast, climbed 1.8% in the West, and remained flat in the South.

Email your comments to rjeditor@dowjones.com.