Existing home sales dropped 5.1 percent to a seasonally adjusted annual rate of 4.62 million in January, down from 4.87 million in December and 5.1 percent below the 4.87 million-unit pace in January 2013. January's activity was the slowest since July 2012, when it stood at 4.59 million.

Sales of existing homes fell in January to the lowest level in a year-and-a-half, while ongoing inventory shortages continue to lift prices in much of the U.S., according to a February 21 report from the National Association of Realtors.

"Disruptive and prolonged winter weather patterns across the country are impacting a wide range of economic activity, and housing is no exception," said Lawrence Yun, NAR's chief economist. "Some housing activity will be delayed until spring. At the same time, we can't ignore the ongoing headwinds of tight credit, limited inventory, higher prices and higher mortgage interest rates. These issues will hinder home sales activity until the positive factors of job growth and new supply from higher housing starts begin to make an impact."

The median existing-home price???(R)???AE'?N????e'?N,A+for all housing types in January was $188,900, up 10.7 percent from January 2013. Single-family home sales fell 5.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 4.30 million in December, and are 6.0 percent below the 4.31 million-unit pace in January 2013. The median existing single-family home price was $188,900 in January, up 10.4 percent from a year ago.

Housing inventory rose 2.2 percent at the end of January to 1.90 million existing homes available for sale, which represents a 4.9-month supply???(R)???AE'?N????e'?N,A+at the current sales pace, up from 4.6 months in December. Unsold inventory is 7.3 percent above a year ago, when there was a 4.4-month supply. A supply of 6.0 to 6.5 months represents a rough balance between buyers and sellers.

The median time on market for all homes was 67 days in January, down from 72 days in December and 71 days on market in December 2013. Short sales were on the market for a median of 150 days in January, while foreclosures typically sold in 58 days and non-distressed homes took 66 days. Thirty-one percent of homes sold in January were on the market for less than a month.

Distressed homes accounted for 15 percent of January sales – 11 percent of were foreclosures, and 4 percent were short sales – compared with 14 percent in December and 24 percent in January 2013. Foreclosures sold for an average discount of 16 percent below market value in January, while short sales were discounted 13 percent.

First-time buyers accounted for 26 percent of purchases in January, down from 27 percent in December and 30 percent in January 2013. This is the lowest market share for first-time buyers since NAR began monthly measurement in October 2008; normally, they should be closer to 40 percent.