Home sales in the U.S. shows signs of slowing
According to the National Association of Realtors, the sales of existing homes dropped in July to the lowest level in 2 ½ years.
At the same time, the inventory of homes on the market reached a new record high of 3.86 million, suggesting that the housing market in the U.S. is loosing steam.
The latest numbers of the housing market was weaker than expected.
Existing home sales dropped by 4.1 per cent in July from June. That is the lowest rate since 2004.
The median price of a home sold last month was $230,000 (US) which is up just 0.9 per cent from the same month last year and the smallest increase in home price since 1995.
The slow down in the housing sector appears to be the result of higher mortgage rates and hesitation by buyers to jump into the market in light of higher energy prices and a slowing economy.
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