Sales of existing US homes fell more heavily than expected in June, as the US property market continued its year-long slump, government figures showed today.
The National Association of Realtors (NAR) said existing home sales dropped 3.8% to an annualised pace of 5.75 million last month.
June's sales pace was worse than predicted as most Wall Street analysts had forecast a lower sales clip of 5.90 million units last month.
May sales were revised down to a rate of 5.98 million properties.
The association blamed the sales fall largely on nervous buyers being reluctant to commit to a property purchase.
Experts say increased home foreclosures and mortgage problems, particularly with loans granted to Americans with stretched finances, are causing turbulence in the US market.
The problems have dented Wall Street in recent months as some banks have witnessed sharp losses in mortgage-related securities holdings.
The report also showed the number of homes for sale across the United States declined last month, dropping 4.2% from May to a still high inventory of 4.2 million properties.
The monthly snapshot showed that prices rose slightly despite falling sales.
The average sales price increased 0.3% to $230,100 compared with June 2006.
The US property market has been in a downturn for over a year, partly amid a glut of homes for sale and as consumers have been hit by higher petrol costs.
