US home sales slide in August after 3 months of solid gains

WASHINGTON (AP) — U.S. home sales slid in August by the most since January as tight supplies and rising prices discouraged potential buyers.

The National Association of Realtors said Monday that sales of existing homes fell 4.8 percent from the previous month to a seasonally adjusted annual rate of 5.31 million, the lowest level since April. That’s down from 5.58 million in July, which was the highest in more than eight years.

Solid job growth and low mortgage rates have boosted sales 6.2 percent in the past year. But the median home price has increased 4.7 percent during that time, more than double the increase in average hourly pay. That is likely pushing more homes out of reach for many buyers.

Sales will likely remain flat for much of the rest of the year, according to the Realtors’ group and some private economists. The NAR forecasts sales will be 5.3 million this year, the most since the recession.