Sales of existing homes in the US dropped 27.2 percent in July, to its lowest level in more than a decade, according to an industry group, adding new doubts on the economic recovery of the US.
The White House described the latest data as “tough”, and promised to consider any possibilities to keep the economic recovery on track.
Sales of condominiums, town houses and single-family homes plunged to 3.83 million from 5.26 million units in June, according to the National Association of Realtors (NAR). It was more than double the 12.1 percent forecasted drop by most analysts, who predicted that home sales in July would decline to 4.72 million units compared to 5.37 million units that was previously reported.
Home sales in July were at its lowest level since NAR began tracking existing home sales in 1999. Sales of single-family homes, which accounted for most of the transactions, were at its lowest level since May 1995, and this was the third straight month of decline.
However, US home sales have not hit rock bottom yet despite very low mortgage rates and favourable housing affordability conditions. Lawrence Yun, chief economist at NAR, said that “a soft sales pace likely will continue for a few additional months” along with the high unemployment rate and slowdown in economic recovery.