US existing home sales fell 1.2 per cent in October to a record low 4.97 million-unit pace, according to a report today that showed the downturn in the US housing market was deepening.
Home prices fell at a record pace and the inventory of homes for sales increased as the housing market felt the pinch of tighter lending standards.
The median existing home price fell 5.1 per cent from a year ago to $207,800 and the total housing inventory rose 1.9 per cent in October to 4.45 million existing homes for sale, a 10.8 month supply at the current sales pace.
The sales pace was the lowest since the realty trade group began tracking both single-family and condo sales jointly in 1999.
Economists polled by Reuters were expecting home resales to fall to a 5.00 million-unit pace from the 5.04 million-unit rate initially reported for September. The September sales pace was revised to a 5.03 million unit rate.
Lawrence Yun, the NAR chief economist, blamed the poor home selling market on a continuing credit crunch and failing subprime loans that were offered to borrowers despite their shaky credit.
"The subprime market has essentially disappeared," he said.