The National Association of Realtors (NAR) announced on Tuesday that the U.S. existing home sales fell 1.7 percent to a seasonally adjusted rate of 5.27 million in June from a revised 5.36 million in May (originally 5.34 million).

Economists had forecast home resales decreasing to a 5.33 million-unit pace last month.

In y-o-y terms, existing-home sales dropped 2.2 percent in June.

According to the report, single-family home sales stood at a seasonally adjusted annual rate of 4.69 million in June, down from 4.76 million in May and down 1.7% from 4.77 million a year ago. The median existing single-family home price was $288,900 in June, up 4.5% from June 2018. Meanwhile, existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 580,000 units in June, down 3.3% from the prior month and down 6.5% from a year ago.

The NAR’s chief economist Lawrence Yun said the nation is in the midst of a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.