Existing-home sales fall

Market especially slow for houses valued at under $250,000.

WASHINGTON — U.S. sales of existing homes slipped for the fourth consecutive month, declining 0.7 percent in July to the slowest pace in more than two years as the real estate market shows signs of cooling.

The National Association of Realtors said Wednesday that homes sold last month at a seasonally adjusted annual pace of 5.34 million. Home sales have fallen 1.5 percent during the past 12 months.

The U.S. housing market has begun to show a widening wealth gap, as inventories of lower-priced homes remain tight. Sales of singlefamily houses worth more than $500,000 have jumped in the past year, led by a 16.2 percent surge in sales of houses valued at more than $1 million.

But homes priced between $100,000 and $250,000 — a level the middle class can afford — have barely budged, while sales of homes for less than $100,000 have plunged 10.6 percent from a year ago. There is a shortage of these more affordable homes on the market because existing owners lack the funding to upgrade to a more expensive property.

Toll Brothers Inc., the country’s biggest builder of luxury homes, on Tuesday reported rising orders, revenue and backlog, indicating wealthy buyers are feeling confident enough to make purchases.

“The mismatch between the price of what’s available

and what homebuyers are looking for is holding back sales this year,” said Danielle Hale, chief economist for realtor.com.

Existing home sales fell in the Northeast, Midwest and South last month, although they increased in the pricier West market.

Inventories did stabilize in July at 1.92 million existing homes available, which was unchanged from a year ago. Before last month, home listings had declined on an annual basis for the past three years. Still, sales listings are relatively low and that stifles the potential for higher home sales despite the possible boost in demand because of the recent strength in the job market.

At the current pace, it would take 4.3 months to sell the homes on the market, unchanged from June; the Realtors group considers less than five months’ supply consistent with a tight market.

Homes were on the market for an average of 27 days, compared with 26 days in June.

Existing home sales account for 90 percent of the market and are calculated when a contract closes; new home sales, considered a timelier indicator though their share is only about 10 percent, are tabulated when contracts get signed.

“Unless and until more existing homes enter the market, it is difficult to see a meaningful rise in sales,” said David Berson, chief economist at the insurance firm Nationwide. “We expect existing sales this year to be about flat relative to 2017.”

Would-be buyers are coping with higher mortgage rates than a year ago and home price growth that has consistently outpaced average wage gains.

The median sales price in July increased 4.5 percent from a year ago to $269,600.

Bloomberg News/DANIEL ACKER Homebuyers and a Realtor look at a house Sunday in Dunlap, Ill. Sales of previously owned homes dropped for a fourth month in July to the weakest in more than two years, the National Association of Realtors said Wednesday.