The National Association of Realtors (NAR) said that sales of single-family, town homes and condominiums slipped 5.1 percent to 5.37 million units from 5.66 million in May.

Most analysts had forecast sales to slump to 5.09 million units.

On a year-on-year basis, sales were however higher -- by 9.8 percent -- from the 4.89 million-unit pace in June 2009, the association said.

Industry officials said the June fall stemmed from an expiry of a government tax credit aimed at boosting home sales, as the country emerged from recession with still high unemployment levels and a persistent credit crunch.

Lawrence Yun, NAR chief economist, said the market showed "uncharacteristic yet understandable swings as buyers responded to the tax credits."

"June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months," he said.

Under the homebuyer tax-credit program, contracts had to be signed by April 30 and settled initially by June 30. The government had extended the settlement date to end September.

"Since this measure of home sales tracks closed contracts, we expect the tax credit to continue to distort the headline reading until September of this year, when the deadline for closed contracts passes," said analyst Theresa Chen of Barclays Capital Research.

Some analysts expect sales to plunge even more amid the high number of jobless Americans still reeling from the recession sparked in 2007 by a home mortgage meltdown.