Investing.com - Sales of previously-owned U.S. homes unexpectedly fell in May, according to figures released by the National Association of Realtors on Wednesday.
Existing home sales fell 0.4% in May from the previous month to an annualized pace of 5.43 million units.
Economists had forecast a 1.5% increase to an annualized pace of 5.52 million.
Existing home sales account for 90% of the market and are calculated when a contract closes.
NAR chief economist Lawrence Yun indicated that "a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year."
Yun pointed out that closings were down in a majority of the country last month and declined on an annual basis in each major region.
Regarding prices, the report showed that median existing-home price for all housing types in May was $264,800, up 4.9% from May 2017 ($252,500). That was an all-time high and the 75th straight month of year-over-year gains in prices.
"Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market,” he explained.