U.S. home resales drop 0.6% in June

WASHINGTON — U.S. sales of existing homes fell 0.6 percent in June, the third-straight monthly decline, as higher prices and a limited supply of listings have sidelined many would-be buyers.

The National Association of Realtors said Monday that homes sold last month at a seasonally adjusted annual pace of 5.38 million. Over the past year, home sales have tumbled 2.2 percent.

Many Americans searching for homes face prices that are climbing at roughly double the pace of wages. Sales of entry-level homes worth less than $250,000 have fallen amid a constrained inventory, and the decline accounts for nearly all of the annual drop in home sales. Still, the number of homes for sale in June rose on an annualized basis for the first time since the middle of 2015, a sign that the three-year downward spiral in inventories may be ending.

Sam Khater, chief economist at mortgage buyer Freddie Mac — the Federal Home Loan Mortgage Corp. — said the lack of significant pay raises could weigh on the housing market.

The number of homes on the market increased a scant 0.5 percent from a year ago to 1.95 million. But the slight improvement comes as prices have climbed beyond the reach of many Americans. The median sales price in June increased 5.2 percent from a year ago to $276,900.

Higher costs are most pronounced in the West, where the median sales price has jumped 10.2 percent over the past year to $417,400. Those increased prices have corresponded with a 5 percent drop in sales in the West during the same period.