Existing-home sales dipped during May to their lowest level in nearly four years, while inventories climbed and prices fell a 10th straight time.

Home resales fell to a 5.99 million annual rate, a 0.3% decrease from April’s revised 6.01 million annual pace, the National Association of Realtors said Monday. April’s rate was originally estimated at 5.99 million.

The median home price was US$223,700 in May, down 2.1% from US$228,500 in May 2006. The median price in April this year was US$219,800. The 2.1% drop marked the 10th consecutive year-over-year price decline.

The May resales level of 5.99 million was in line with Wall Street expectations. It was the lowest pace of demand since 5.94 million in June 2003.

NAR economist Lawrence Yun said would-be buyers appear to be waiting for more signs of stability. “The market is underperforming when you consider positive fundamentals such as the strength of job creation, economic growth, favorable mortgage interest rates and flat home prices,” Yun said in a release.

Inventories of homes rose 5% at the end of May to 4.43 million available for sale, which represented an 8.9-month supply at the current sales pace. There was an 8.4-month supply at the end of April, which was unrevised from a previous estimate.

Regionally, existing-home sales were mixed. Sales rose 0.7% in the Midwest and 5.8% in the Northeast. Demand fell 0.8% in the West and 3.4% in the South.