US existing home sales drop more than expected in June

Sales of US existing homes fell more than expected in June, according to data from the National Association of Realtors.

Sales were down 1.8% to a seasonally-adjusted annual rate of 5.52m from 5.62m in May. Economists had been expecting a much smaller decline of 1.0%.

The median price of an existing home was $263,800, up 6.5% from June last year and surpassing May as the new peak. It marked the 64th straight month of year-over-year gains. Total housing inventory, meanwhile, fell 0.5% to 1.96m existing homes available for sale and is now 7.1% lower than a year ago.

Lawrence Yun, NAR chief economist, said: "Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that's straining their budget.

"The demand for buying a home is as strong as it has been since before the Great Recession. Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines."