ISTANBUL

US pending home sales decreased 2.1% in May to their lowest level on record, according to data released Thursday by the National Association of Realtors (NAR).

While the market expectation for the figure was to show a 0.6% decline, pending home sales plummeted 7.7% in April to their lowest level in four years.

The pending home sales index, which is a forward-looking indicator of home sales based on contract signings, declined to 70.8 in May from 72.3 in April.

"The market is at an interesting point with rising inventory and lower demand," said Lawrence Yun, the association's chief economist. "Supply and demand movements suggest easing home price appreciation in upcoming months."

"Inevitably, more inventory in a job-creating economy will lead to greater home buying, especially when mortgage rates descend," he added.

On an annual basis, pending transactions were down 6.6%, compared to the same month of the last year.

Pending home sales declined in all US regions on an annual bases, while the Midwest and South posted monthly losses in transactions, but the Northeast and West recorded gains, the NAR said in its statement.

The association said it forecasts 4.26 million existing-home sales in 2024, and the median price increasing to a record annual high of $405,300 this year.

Pending home sales measure the change in the number of houses under contract to be sold but still awaiting transaction. It excludes new home construction.