Existing-home sales drop 10.5%

Existing-home sales had a less-than-energized month in November, with sales at their slowest pace in 19 months.

Though some of the decrease was likely because of an apparent rise in closing timeframes that may have pushed some transactions into December, total existing-home sales still suffered a 10.5% setback to a seasonally adjusted annual rate of 4.76 million in November, according to the National Association of Realtors.

This compares to a downwardly revised estimate of 5.32 million in October. Additionally, sales are now 3.8% below a year ago — the first year-over-year decrease since September 2014.

Single-family home sales fared worse, dropping 12.1% to a seasonally adjusted annual rate of 4.15 million in November from 4.72 million in October (down 4.6% year-over-year).

This might not be as dire for the industry as it appears, however, as realtors are adjusting to the Know Before You Owe initiative.

"Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales," said NAR chief economist Lawrence Yun. "However, signed contracts have remained mostly steady in recent months, and properties sold faster in November. Therefore it's highly possible the stark sales decline wasn't because of sudden, withering demand."

"It's possible the longer timeframes pushed a latter portion of would-be November transactions into December," added Yun. "As long as closing timeframes don't rise even further, it's likely more sales will register to this month's total, and November's large dip will be more of an outlier."

Home prices still managed to rise in November, with the median price of $220,300 rising 6.3% above November 2014.

The median existing single-family home price was $221,600 in November, up 6.6% from November 2014.

Total housing inventory at the end of November decreased 3.3% to 2.04 million existing homes available for sale, and is now 1.9% lower than a year ago.

"Realtors worked hard to prepare for Know Before You Owe, and we knew there would be some near-term challenges as the industry continues to adapt," says NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "Nonetheless, an early trend of longer lead times to closings is cause for concern. As Realtors report issues with their transactions, we will continue to work with the Consumer Financial Protection Bureau to ensure as little disruption as possible to the business of real estate."

Sales decreased across the country, but most sharply in the Midwest and West (-15.4% and -13.9%, respectively).