Home sales, prices continue to fall

Sales of existing homes, depressed by turmoil in credit markets, fell for a sixth straight month in August, pushing activity to the lowest point in five years, an industry trade group said Tuesday. A separate report showed that t he nationwide decline in home prices accelerated in July, posting the steepest drop in 16 years.

Home prices have fallen by more every month since the beginning of the year, according to the S&P/Case-Shiller home price index released Tuesday.

Sales of existing single-family homes dropped by 4.3 percent in August from July, the National Association of Realtors said. Sales dropped to a seasonally adjusted rate 5.5 million units a year, the slowest pace since August 2002.