Existing home sales hit record, but short-term outlook softens

WASHINGTON, D.C. -- Sales of existing single-family homes reached a new record in August, but sales are now slowing and likely will be lower than previously expected over the months ahead, according to a report from the National Association of Realtors.

Existing-home sales rose 5.8% in August to a seasonally adjusted annual rate of 5.50 million units from an upwardly revised level of 5.20 million units in July, the trade group said. Last month's sales activity remained 5% ahead of the 5.24-million unit pace of August 2000. The previous record, which was set in June 1999, was an annual rate of 5.45 million units.