The Realtors forecast that sales of existing homes will decline 2. 8 per cent this year to 4. 95 million, compared with 5. 1 million in 2013.
Sales of existing homes climbed 4. 9 per cent in May to a seasonally adjusted annual rate of 4. 89 million homes, according to the National Association of Realtors.
Sluggish sales, in turn, will slow annual price gains this year to roughly 5 per cent or 6 per cent, economists predict.
The states with the biggest price gains were Hawaii, 13. 2 per cent; California, 13. 1 per cent; Nevada, 12. 6 per cent; Michigan, 11. 8 per cent; New York, 11 per cent; Georgia, 10. 3 per cent; and Oregon, 10. 1 per cent.
Data provider CoreLogic said prices increased 8. 8 per cent in May compared with 12 months earlier.
Home sales began to stall in the middle of last year after double-digit price increases and higher mortgage rates made real estate less affordable for many people.
Read more here: Business Spectator