WASHINGTON - Existing home sales in the US dipped sharply in September underlining definite slowdown in the housing market, according to the latest report by the National Association of Realtors. The report released Wednesday said that existing home sales slipped by 1.9 percent to 6.18 million units in September.
The median price of a home for one family dropped to $219,800 last month down by 2.5 percent on the prices recorded a year ago. This was the biggest drop in prices over a single year since the records were tabulated nearly 40 years ago.
The housing market, which saw boom time over the last five years, has been rapidly declining over the last few months. Increasing mortgage rates, soaring energy prices as well as a general downturn in the economy is responsible for the same, according to economists.
But the Realtors believe that the worst is effectively behind them. "The worst is behind us as far as a market correction _ this is likely the trough for sales," said David Lereah, the Realtors' chief economist. "When consumers recognize that home sales are stabilizing, we'll see the buyers who've been on the sidelines get back into the market."
Some analysts though feel that sales will not drive back up till next spring at the latest. The inventory of sales of existing homes across the US fell 2.4 percent to 3.75 million homes available at the end of September.
Gary Thayer, chief economist with A.G. Edwards and Sons said the slow pace of the market was worrisome, "This suggests that we still have a very weak housing market and that housing will probably be a drag on the economy going forward, causing the Fed to hold interest rates steady," he said.
Analysts had forecast sales to slow to 6.23 million in September from the 6.30 million in August.
