A forward-looking gauge of US home purchases slipped in June, after hitting its highest level in more than nine years in May, the National Association of Realtors said last month. A separate report from the industry group showed sales of previously owned homes increased 3.2 per cent in June to a seasonally adjusted annual rate of 5.49 million, the strongest since February 2007.
The share of first-time buyers fell to a six-month low of 28 per cent last month.
All-cash transactions made up about 23 per cent.
There were 2.24 million unsold previously owned homes on the market in July, down 4.7 per cent from a year ago. That pushed the median home price to US$234,000, up 5.6 per cent from the year-ago period. Although higher prices could curb sales, they are raising equity for many owners and boosting household wealth.
They also may encourage builders to ramp up construction, further boosting the economy. Housing starts rose to a near eight-year high in July.
Home Sales, Prices: US
Sales of US previously-owned home rose to a near 8.5-year high in July and factory activity in the mid-Atlantic region picked up this month, fresh signs of steady economic growth that likely keeps the Federal Reserve on track to raise interest rates this year. The National Association of Realtors said Friday existing home sales to an annual rate of 5.59 million units last month, the highest pace since February 2007.