Existing Homes Sales Decline to Lowest Level in Four Months

Existing home sales declined 3.2% in October to the lowest level in three months, the National Association of Realtors said Nov. 20.

Sales fell to an annual rate of 5.12 million, the fewest since June, after September’s 5.29 million.

The October level was slightly lower than economists’ median forecast of a drop to 5.14 million, Bloomberg News reported.

“The government shutdown discouraged some potential homebuyers in October, so that would’ve been a drag on sales,” Gus Faucher, senior economist at PNC Financial Services Group told Bloomberg. “We do expect to see a pick up later this year and into 2014 as the economy continues to improve.”

Wholesale inventories rose 0.6% in September, and sales increased 0.2%, according to a separate report from the Commerce Department.

Economists had called for a 0.3% gain in inventories, Bloomberg reported.

Wholesale inventories account for about one-fourth of total business stockpiles. Retailers and factories account for the rest.