Home sales drop 4.1% in July and median prices drop

July inventory of unsold homes was highest ever

Supply would take 7.3 months to sell. Median prices drop in West, Midwest and Northeast.

Inventory of homes for sale has surged to the highest level in 13 years. There are now 3.86 million homes for sale

Lowe's (LOW), the nation's second-largest home-improvement chain, said Monday that a slowing housing market will hurt its earnings for the rest of the year.

Last week the National Association of Home Builders reported that confidence among builders sank to a 15-year low.

From USA TODAY