Home Sales Plunge 5.1%

WASHINGTON (MarketWatch) - Resales of U.S. homes fell 5.1% in June to a seasonally adjusted annual rate of 5.37 million after a federal subsidy for home buyers ended, the National Association of Realtors estimated Thursday. Economists surveyed by MarketWatch were expecting sales to fall about 10% to a 5.10 million annual pace. Inventories of unsold homes increased 2.5% to 3.99 million in June, representing an 8.9-month supply, the highest since August 2009. In coming months, the supply is expected to rise above 10 months, putting downward pressure on prices, said Lawrence Yun, chief economist for the real estate agents' lobbying and advocacy organization.