Sales of Existing Homes Drop for 2nd Month

Sales of previously owned U.S. homes dropped sharply in August for the second month, signaling that higher interest rates are helping to bring about a long-awaited cooling in the sizzling housing market. Existing-home sales declined 2.8% last month, to a seasonally adjusted annual rate of 5.25 million units, after a drop of 4.1% in July, the National Assn. of Realtors said. NAR chief economist Fred Flick said he would not be surprised to see home sales ease again in September, but he added: “We are still on track to hit a record for the year.” The median price of a single-family home rose 1.3% in August to an all-time high of $137,700, versus $136,000 in July. Home prices are up 5.3% on the year. The August home sales rate was up 9.1% from 4.81 million units a year ago, the group said. In California, sales of existing homes were up 2.6%, and the median price jumped 7.6% from a year ago, the California Assn. of Realtors said.