MONTGOMERY, Ala. (AP) - Sales of previously occupied homes in Alabama fell in July by 25.7 percent from the same month last year.
The drop was similar to the 25.5 percent decline nationally compared to July 2009. But some in the real estate industry say it likely was caused by the end of a federal tax credit of up to $8,000.
Blake Markham, president of the Montgomery Area Association of Realtors, said the tax credit that expired June 30 may have moved some buyers to close that month, skewing the number for July. He says record low mortgage rates are bringing buyers back to the market.
Sales of new homes dropped sharply last month to the slowest pace on record, the latest sign that the economic recovery is fading.
Economists surveyed by Thomson Reuters had expected a pace of 330,000.
June's sales figures were revised downward to an annual pace of 315,000. May's figures were revised upward and are now the second-slowest pace on record.
The median sales price in July was $204,000. That was down 4.8 percent from a year earlier and down 6 percent from June.