The NAR reports existing home sales dropped -5.1% in June 2010. Single-family home sales dropped -5.6%.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.

Graph courtesy of Calculated Risk

The NAR ties slumping sales directly to jobs. Distressed sales were 32% of total existing home sales.

Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.

Housing inventory is almost at a 9 month supply:

Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.

Calculated Risk goes into detail on housing inventories, complete with graphs.