Home Sales on a ‘Staircase to the Basement’

Sales of existing homes fell in June for the fourth straight month as problems in the mortgage industry continued to hurt the housing market.

The National Association of Realtors reported yesterday that sales of previously owned homes dropped 3.8 percent from May to a seasonally adjusted rate of 5.75 million units, the slowest pace in more than four years. It was also 11.4 percent less than the number of units sold in June 2006.

New Home Sales Down Substantially

WASHINGTON — Sales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell.

The Commerce Department reported that sales of new single-family homes dropped by 6.6 percent last month to a seasonally adjusted annual rate of 834,000 units. The decline was more than triple what had been expected and was the largest percentage drop since sales fell by 12.7 percent in January. Sales are now 22.3 percent below the level of a year ago.