Washington, DC, Oct. 19, 2012 -- Home resales fell 1.7% in September to a seasonally adjusted annual rate of 4.75 million, according to the National Association of Realtors.
Economists had expected a rate of 4.8 million for September.
The median existing-home price rose 11.3% from the prior year, the largest annual gain since November 2005.
Inventories fell 3.3% to 2.32 million units in September, 5.9 months of supply at the current sales rate. That was the first reading below six months since March 2006.
"Despite occasional month-to-month setbacks, we're experiencing a genuine recovery," said Lawrence Yun, NAR's chief economist.
"The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate, unless home builders robustly ramp up production," said Lawrence Yun, NAR's chief economist.