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American housing market slumps
Sales of previously owned US homes fell to a six-month low in May and prices dropped 4.6 per cent from a year ago, pointing to a housing market still struggling to regain its footing. The National Association of Realtors said yesterday that sales slipped 3.8 per cent month-on-month to an annual rate of 4.81m units, the lowest since November. It was the second straight month of declines. The drop was smaller than economists had expected, but the April sales figure was revised lower, leaving a report that was largely in line with expectations in financial markets. Sales were partly affected by tornados and flooding.