(Sharecast News) - Home sales in the US were flat last month amid limited inventory and due to the hurdle posed by affordability.
The National Association of Realtors's Pending Home Sales Index was unchanged from the month before at 78.9 in April.
Economists polled by Dow Jones Newswires had forecast a rise of 0.8%.
"Not all buying interests are being completed due to limited inventory," said NAR chief economist Lawrence Yun.
"Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving."
The PHSI rose in three of the US's four geographical regions but declined by 11.3% on the month on the Northeast.
A home sale is classed as pending once a contract has been signed but the transaction has yet to go through.
Ferguson (FERG)