US pending home sales fall to five-month low in May

WASHINGTON, June 29 (Reuters) - Contracts to buy U.S. previously owned homes fell more than expected in May, dropping to the lowest level in five months as a chronic shortage of houses on the market weighed on activity...

The National Association of Realtors (NAR) said on Thursday that its Pending Home Sales Index, based on signed contracts, dropped 2.7% to 76.5 last month, the lowest level since December..

Economists polled by Reuters had forecast pending sales, which become sales after a month or two, falling 0.5%...

"Despite sluggish pending contract signings, the housing market is resilient with approximately three offers for each listing," said NAR Chief Economist Lawrence Yun..

While the tight supply is weighing on the market for previously owned homes, it is boosting construction and sales of new houses..

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