UPDATE 3-U.S. existing home sales slip and prices tumble

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By Patrick Rucker

WASHINGTON, Feb 25 (Reuters) - U.S. sales of existing homes fell for a sixth straight month in January, while prices tumbled 4.6 percent amid swelling inventories, according to a report on Monday that offered no end in sight for the housing slump.

The pace of existing home sales fell 0.4 percent in January to an annual rate of 4.89 million units, the National Association of Realtors said in its report.

Economists polled by Reuters had expected home resales to fall to a 4.80 million-unit pace from the 4.89 million-unit rate initially reported for December. The December sales pace was revised to a 4.91 million-unit rate.

The national homes market is in the worst downturn since the Great Depression of the 1930s. The NAR's chief economist, Lawrence Yun, said the market is "scratching the bottom," with sales holding at a deflated rate of around 5 million units for the past several months.

"This is further evidence that it will take time to get housing back on its feet. This will not be a quick turn around," said Bret Barker, a portfolio manager with Metropolitan West Asset Management, Los Angeles.

The inventory of homes for sale rose 5.5 percent to 4.19 million units at the end of January -- about 10.3 months' supply at the current sales pace.

The national median home price fell to $201,100 from $210,900 a year earlier, the NAR said. The price of the median single-family home was $198,700 in January, the lowest since $197,700 reported in January 2005.