Washington  - US home sales rose 3.1 per cent in July from a month earlier as some buyers appeared to take advantage of market- bottom deals, the National Association of Realtors said Monday.

Sales of previously owned homes climbed to an annual rate of 5 million on the month, more than forecast and up from a 10-year low of 4.85 million in June.

The July figure is still down 13.2 per cent from July 2007, indicating that the housing crisis is still far from a recovery stage.

The average price of homes dropped 7.1 per cent in July from the year-earlier period. The NAR also said the number of homes up for sale had reached a record high in July, as the slumping prices have forced an unprecedented number of property owners into foreclosure. (dpa)