Home sales in the US fall back

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Sales of previously-owned US homes fell in August after four consecutive monthly increases, an estate agent body has said.

The National Association of Realtors said sales fell 2.7% to an annual rate of 5.1 million last month, down from an annual rate of 5.24 million in July.

House prices were down 12.5% on a year ago. The average sale price now stands at $177,000 (£110,100).

Analysts saw the data as evidence of fragility in the US housing recovery.

"We suspect it is just a temporary blip in the improving trend rather than a sign of renewed weakness," said Paul Dales, US economist at Capital Economics.

Sales continued to be much stronger than seen before a stimulus scheme began offering tax credits for first-time buyers, said Lawrence Yun, chief economist at the National Association of Realtors.

He added that repossessed homes continued to drag down average selling prices, as they typically sold for between 15% and 20% less than other homes.