Sales of existing homes fall 3.5% in July (by Steve Goldstein)

WASHINGTON (MarketWatch) - Sales of existing homes fell 3.5% in July to an eight-month low, with a high cancellation rate again taking its toll on an already troubled housing market, according to data released Thursday. The National Association of Realtors said sales fell to a seasonally adjusted annual rate of 4.67 million. June's data was upwardly revised to 4.84 million from an initially reported 4.77 million. Economists polled by MarketWatch had expected a 4.99 million annual rate for July. The numbers for the second straight month went against the increase in pending home sales, again showing the difference between agreed and closed transactions. Sales in July were 21% above the same month of 2010, which represented the cyclical low following the expiration of the home buyer tax credit. The median price was $174,000, a decline of 4.4% from July 2010. June prices were sharply downwardly revised to $176,100 from an initially reported $184,300, which NAR blamed mostly on late-reporting data from the troubled Phoenix area.