US real estate sales decline

Sales of existing homes in the US fell unexpectedly in June, the National Association of Realtors (NAR) has announced.

According to the organisation, transactions declined by 0.8 per cent compared to May, while they remain 8.8 per cent lower than the figures recorded in June last year.

However, real estate values registered an increase of 0.8 per cent in June, in comparison to the same month in 2010.

NAR chief economist Lawrence Yun stated: "Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market, including an unusual spike in contract cancellations in the past month."

Meanwhile, president of the association Ron Phipps commented that due to the high levels of affordability in the US housing sector, sales would be expected to be stronger.

Earlier this month, NAR warned politicians not to introduce policies that could jeopardise the recovery of the US property industry. The organisation stressed that a robust housing market is vital to underpin a wider economic recovery.
 

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