By Mucahithan Avcioglu
ISTANBUL (AA) – Sales of existing homes in the US dropped 2.7% month-on-month in June to a seasonally adjusted annual rate of 3.93 million, falling short of market expectations, according to data released Wednesday by the National Association of Realtors.
The figure came in just below forecasts of 4 million units and marked a decrease from 4.04 million in May.
"Month-over-month sales declined in the Northeast, Midwest and South and rose modestly in the West. Year-over-year, sales fell in the Northeast and West, while rising in the Midwest and South," the group said in a statement.
Annual home sales were broadly stable last month.
Meanwhile, the median price for existing homes rose 2% from a year earlier to $435,300 — the highest on record.
"The record high median home price highlights how American homeowners' wealth continues to grow — a benefit of homeownership. The average homeowner's wealth has expanded by $140,900 over the past five years," said Lawrence Yun, the group’s chief economist.
"Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market. More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment," he said.