Paul Davidson

USA TODAY

Existing home sales in January fell to the lowest level in 18 months as extreme winter weather continued to pummel the housing market.

Sales of existing homes declined 5.1% from December to a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors said Friday.

Analysts estimated that homes were sold at a 4.68 million annual pace last month. January sales also were down 5.1% from January 2013.

"Disruptive and prolonged winter weather patterns across the country are impacting a wide range of economic activity, and housing is no exception," said NAR Chief Economist Lawrence Yun.

Yet Yun also cited other obstacles, including tight credit, higher prices, higher mortgage rates and limited inventory. "These issues will hinder home sales activity" until stronger job growth bolsters demand and housing starts boost supply, he said.

In January, housing inventories increased to a 4.9-month supply from a 4.6-month supply in December. A six-month supply is generally considered balanced.

Single-family home sales fell 5.8%. Condominium and co-op sales were unchanged.

The flagging sales suggest a deceleration from the momentum for much of 2013, when 5.09 million homes were sold, the most in seven years.

"Such a picture confirms that the U.S. housing market reached its peak at the end of 2013 and further reacceleration is unlikely near term," Annalisa Piazza of Newedge Strategy said in a research note.

Home building dipped 16% in January from December, the Commerce Department said this week. Signed contracts to buy homes plunged in December, foreshadowing the January drop-off, the Realtors said in a separate report.

The weather has kept would-be buyers from venturing to open houses, while construction crews have endured work stoppages.

But sales also declined in parts of the country where weather was less of a factor. This suggested that price pressures and tight inventories are also weighing on the real estate market.

Buying fell 7.3% in Western states, the region less affected by winter storms and where average prices are the highest. That decline was significantly larger than in the Northeast, South and Midwest.

Just 26% of sales last month were by first-time buyers. In a healthy market, that figure is closer to 40%. All cash-sales accounted for 33% of all purchases, evidence that investors continue to make up a sizable share of the sales.

Existing-home sales in a healthy market would approach 5.5 million, nearly 900,000 more than the January rate. Buying has slowed during the past six months.