The index that follows contracts on existing-home sales dropped 1.2% from 89.7 in July to 88.6 in August, according to the National Association of Realtors. This could mean people remain wary of purchasing homes since the economy remains sluggish. "There also is a general decrease in the desire of people to own a home," said Paul Dales, senior U.S. economist for macroeconomic consultancy Capital Economics. "Under normal times, the housing market would rebound very quickly. But the legacy of recession and the financial crisis means that won't happen."
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