US existing home sales tumbled by 2.5 per cent to an annual rate of 5.46 million in April after climbing by 1.1 per cent to a rate of 5.60 million in March, the National Association of Realtors released a report on Thursday.
With the much bigger than expected monthly decrease, existing home sales in April were down by 1.4 percent compared to the same month a year ago.
NAR chief economist Lawrence Yun attributed the slump in existing home sales in April to staggeringly low inventory levels
"Realtors say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates," Yun said.
He added, "However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford."