U.S. home resales fell, but prices continue to trend higher. This comes a day after government data showed new home sales vaulted to a nine-year high in July. Bobbi Rebell reports.
U.S. home resales fell more than expected in July, but prices continue to trend higher. At the heart of the data, not enough inventory has been limiting choice for buyers. The National Association of Realtors said existing home sales declined 3.2 percent to an annual rate of 5.39 million units last month. The median house price rose 5.3 percent from a year ago to $244,100. Those price gains, say analysts, mean the housing market remained on solid ground. Steve Blitz is chief economist at M Science. (SOUNDBITE) STEVE BLITZ, CHIEF ECONOMIST, M SCIENCE, (ENGLISH) SAYING: "If you look at the numbers from month to month, they go up, they go down. There's almost a random component to it, but, if you look at it over six, twelve, eighteen month period of time, you do see a trend. And the trend is very much toward stronger existing home sales, and, even with that drop, we're still inside that upper trend." This comes a day after the government reported that new home sales vaulted to a nine-year high in July. Housing, along with consumer spending is a key driver of the U.S. economy, and is being closely watched by economists looking for growth in the third quarter.