WASHINGTON (AP) - U.S. sales of existing homes eked out a small increase in November but the price of homes sold fell for a record fourth consecutive month, a real estate trade group reported Thursday.

The National Association of Realtors reported that sales of previously owned homes rose 0.6 per cent in November to a seasonally adjusted annual rate of 6.28 million units.

That followed a 0.5 per cent sales increase in October and marked the first back-to-back sales gains since the spring of 2005.

The slight increases in sales were not enough to halt a slide in home prices. The median price for an existing home sold in November dropped to US$218,000, down 3.1 per cent from the price a year ago.

It was the first time on record that sales prices compared with a year ago have fallen for four straight months.

In another report, the number of Americans filing applications for unemployment benefits edged up slightly last week but remained at a level indicating the job market is holding up well despite the slowing economy.

The Labour Department reported that 317,000 newly laid-off workers filed for jobless benefits, an increase of 1,000 from the previous week. That was better than the rise of 8,000 that had been expected.

Even though the economy has slowed significantly this year under the weight of a slumping housing market and weaker consumer spending, employers have been reluctant to lay off workers.

The four-week moving average for claims edged down last week to 315,750, the lowest level in seven weeks.

The country’s unemployment rate stood at 4.5 per cent in November, up only slightly from a five-year low of 4.4 per cent in October as employers added 132,000 workers to their payrolls.

There were pockets of weakness, reflecting the problems being faced in housing and manufacturing, where automakers are struggling with sluggish sales. Construction companies cut 29,000 jobs, the most in three years, and manufacturing shed jobs for a fifth straight month.

The overall economy slowed to a growth rate of just two per cent in the July-September quarter and many analysts believe activity will remain sluggish in the final three months of the year.

The slowdown was led by weakness in housing, which had been one of the economy’s standout performers.

Source:

http://www.news1130.com/news/business/article.jsp?content=b122817A