Sales of existing single-family homes, condominiums and co-ops declined 1.5% to an adjusted annual rate of 4.55 million in May, according to the National Association of Realtors (NAR).

Limited supplies of housing inventory held back existing-home sales, according to the NAR, but sales were up 9.6% over the same month last year.

"The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand,” said Lawrence Yun, NAR chief economist. “The normal seasonal upturn in inventory did not occur this spring. Even with the monthly decline, home sales have moved markedly higher with 11 consecutive months of gains over the same month a year earlier.”

He added that despite tight credit conditions and higher down-payment requirements that are negating the impact of record high affordability, the recovery is occurring.