Existing-Home Sales Off 1.7% in Slowing of a Record Pace
"It's still a very healthy pace but certainly we are winding down from the boom," the group's chief economist, David Lereah, said.
But other analysts said the data showed signs that consumer confidence was beginning to erode in the face of job pressures, tumbling stock markets and the prospect of war with Iraq.
"Even with low interest rates, if jobs and the economy stay weak, and risks to balance sheets from the bad stock market and international risks remain, I think we're going to see hesitation in buying big-ticket items like homes," said Allen Sinai, chief economist for Decision Economics.
Home buying levels surpassed a 5.7 million sales pace in four of the first five months of this year, but have been below the 5.4 million pace for the last three months. Mr. Lereah said he expected home sales to hit more than 5.4 million units for the year, breaking last year's record of 5.3 million.