US existing home sales slump in November

Sales of existing US homes fell sharply in November, to their lowest pace in 19 months, according to data released by the country's National Association of Realtors.

NAR figures suggest existing home sales dropped 10.5% to an annual rate of 4.76m from a downwardly-revised 5.32m in October and compared with consensus estimates for an increase to 5.35m.

There were 2.04m available homes for sale, a 3.3% month-on-month decline, while the median price for a home rose 6.3% year-on-year to $220,300.

Lawrence Yun, NAR chief economist, said multiple factors led to November's sales decline, but the primary reason could be an anomaly as the industry adjusts to the new Know Before You Owe rule.

"Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales," he said.

"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."