US home sales hit nine and a half year low

The report from the National Association of Realtors on Monday also showed the smallest annual home price increase in more than eight years. (Homes are seen for sale in the northwest area of Portland, Oregon. - Reuters file pic)

WASHINGTON: U.S. home sales dropped to their lowest level in more than 9-1/2 years in May, strengthening expectations for a sharp contraction in housing market activity in the second quarter following disruptions caused by the COVID-19 pandemic.

The report from the National Association of Realtors on Monday also showed the smallest annual home price increase in more than eight years. The slump in existing home sales reflected closings on contracts signed in March and April, when nearly the whole country was under lockdowns to slow the spread of the respiratory illness.