U.S. existing home sales fall 1.2 percent

Washington -- U.S. existing home sales fell 1.2 percent, marking an eighth consecutive monthly drop, and home prices plunged a record $11,100, a Realtors' group said.

Home resales dropped to a 4.97 million annual rate from September's revised 5.03 million pace, the National Association of Realtors said Wednesday.

The group originally estimated September's rate at 5.04 million.
October's median home price was $207,800, down 5.1 percent from October 2006's $218,900, the biggest year-over-year price decline on record.

The median price in September this year was $210,400, the group said.

Chief Economist Lawrence Yun blamed "the subprime collapse" for the sales and price drops and said it would "take some time" before sales and prices increased.

The last time sales rose was in February.

October home inventories rose 1.9 percent to 4.45 million -- a 10.8 month supply at the current sales pace -- up from September's 10.4 month supply, the group said.

Regionally, existing home sales were unchanged in the Northeast and South and fell 1.7 percent in the Midwest and 4.4 percent in the West.

Among metropolitan areas showing price gains were Charlotte, N.C.; San Francisco; Albuquerque; and Green Bay, Wis., the group said.

Copyright 2007 by United Press International.