WASHINGTON — US homebuyers pulled back in July, as sales declined amid a shortage of properties and rising prices.
Sales of existing homes fell 3.2 percent last month to a seasonally adjusted annual rate of 5.39 million, the National Association of Realtors said Wednesday. The decline marks a reversal from rising demand that pushed sales in June to their highest level since =2007.
Fewer homes are coming onto the market, putting a cap on the sales growth enjoyed earlier this year thanks to a low mortgage rate and brightening job market. Rising demand for homes is a positive. But the dwindling supply has pushed up prices, which suggests a market not yet at full health.
This mismatch between supply and demand creates an environment of limited sales growth and escalating home values.