A gauge of signed contracts to purchase previously-owned U.S. homes rose less than forecast in March and the prior month's reading was revised down, indicating a lack of inventory is restraining the market, according to data released Monday from the National Association of Realtors in Washington.
The latest results show that interested buyers continue to face a persistent shortage of affordable inventory that is driving up property prices faster than wage growth. Nonetheless, a solid job market and lower taxes are helping underpin demand for housing even as mortgage rates climb to an almost five-year high.

The NAR revised its annual sales forecast to 5.61 million existing homes this year, 1.8% more than in 2017. It previously projected sales would match last year's 5.51 million.

NAR data released earlier this month showed existing-home sales climbed to a four-month high in March. The Realtors group said half of the houses sold were on the market for less than a month. The NAR has said it expects the market will remain tight until more institutional investors list their properties and more homeowners agree to sell their houses.
“Healthy economic conditions are creating considerable demand for purchasing a home, but not all buyers are able to sign contracts because of the lack of choices in inventory,” Lawrence Yun, NAR's chief economist, said in a statement. “Prospective buyers are increasingly having difficulty finding an affordable home to buy.”