Existing home sales fell 3.4% to 5.15 million in September vs. the 5.27 million expected, hitting the lowest point since November 2015, the National Association of Realtors reported on Friday.
August existing home sales were revised down slightly to 5.33 million from the 5.34 million previously reported.
NAR acknowledges a small impact from Hurricane Florence, but said the headline pace would still have declined in the month to a nearly three-year low without the hurricane.
September resales in the South fell 5.4% partially of Florence, while sales in West dropped 3.6% on affordability issues and slower foot traffic. Sales were flat in the Midwest and declined 2.9% in the Northeast.
September home supply fell 1.6% to 1.880 million, but rose 1.1% year over year, allowing the months supply to tick up to 4.4 months from 4.3 months in August and 4.2 months a year ago.
NAR's Chief Economist Lawrence Yun said there has been a clear shift in the markets, with price gains slowing, sales dipping, and inventories moving higher.
The national median sales price rose 4.2% year over year to $258,100 in September, still a strong monthly increase, but a slowdown from roughly 7% year over year gains in recent years.
