Home Sales at Lowest Level in More Than a Decade

Housing sales in July plunged to their lowest level in more than a decade, exceeding even the grimmest forecasts. þþThe National Association of Realtors said Tuesday that the seasonally adjusted annual sales rate of 3.83 million was 25.5 percent below the level of July a year ago. þþThe July sales were down 27.2 percent from June. þþIt was the lowest rate for existing-home sales since 1999. For sales of single-family homes, it was the lowest since 1995. þþAnalysts expected a decline because July was the first month in which buyers could not take advantage of a tax credit. That helped prop up the market last winter. But most had predicted a decline of only about 13 percent. þþThe drop came despite the lowest mortgage rates in decades. þþThe Realtor group was optimistic the fall-off would be temporary, as long as the economy improves — a big “if.” þþ“Given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs,” the group’s chief economist, Lawrence Yun, said in a statement. þþ