US Home Sales Fell 0.4 Percent In May

US existing home sales slipped 0.4 percent in May, as the prolonged shortage of properties on the market is deterring home-buying.

The National Association of Realtors said on Wednesday that homes were sold at a seasonally adjusted annual pace of 5.43 million in May, the second straight monthly decline. Sales have tumbled 3 percent over the past year, despite steady job growth that has boosted demand from would-be home buyers as the unemployment rate has fallen to a multi-decade low of 3.8 percent.

The housing market is caught in a vice grip of fewer sales listings and rising mortgage rates, both of which have made home ownership less affordable for many Americans.

The number of sales listings has dropped 6.1 percent over the past year to 1.85 million. That forced would-be buyers to act quickly and sign contracts on average in just 26 days. It also pushed up home values as the median sales price in May rose 4.9 percent from a year ago to US$264,800.

Sales rose in the Northeast in May, but fell in the Midwest, South and West. (AP)