By Ovunc Kutlu
ISTANBUL (AA) - Pending home sales in the US declined by 2.7% in May compared to the previous month, according to data released Thursday by the National Association of Realtors (NAR).
Market expectations had anticipated a 0.2% gain after a 0.4% decrease in April.
According to a statement from NAR, pending home sales in May were down by 22.2% compared to the same month last year.
"It is encouraging that homebuilders have ramped up production, but the supply from new construction takes time and remains insufficient," said Lawrence Yun, the association’s chief economist.
Pending home sales measure the change in the number of houses under contract to be sold but still awaiting the transaction. They exclude new home construction. They are considered a forward-looking indicator of home sales based on contract signings.