Investing.com - Contracts to buy previously owned homes unexpectedly fell in April, according to data released on Thursday by the National Association of Realtors (NAR).
NAR said its pending home sales index, which measures signed contracts for homes where transactions have not yet closed, fell 1.3% to a reading of 106.4 after increasing by 0.6% in the previous month.
Economists had forecast pending home sales rising 0.4% last month.
After two straight months of modest increases, pending home sales dipped in April to their third-lowest level over the past year, according to report.
NAR indicated that all major regions saw no gain in contract activity last month.
NAR chief economist Larry Yun explained that the demand for buying a home was very robust, but sales were hindered because of “severe housing shortages in much of the country”.
“The unfortunate reality for many home shoppers is that reaching the market will remain challenging if supply stays at these dire levels,” Yun said.