Sales of existing homes decline 1.7% in September (by Ruth Mantell)

WASHINGTON (MarketWatch) -- Sales of existing homes declined 1.7% in September to a seasonally adjusted annual rate of 4.75 million from a slightly upwardly revised rate of 4.83 million in August, the National Association of Realtors reported Friday. Economist polled by MarketWatch 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 declined 3.3% to 2.32 million units in September, representing 5.9 months of supply at the current sales rate, the first reading below six months since March 2006. "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.