WASHINGTON, DC—Sales of existing homes fell 10.5% last month, according to the National Association of Realtors, although for-sale apartments posted year-over-year gains. NAR attributed the dropoff in part to new regulations that prolong closing timeframes.

The seasonally adjusted annual rate of 4.76 million units, including both single-family and multifamily sales, was the lowest since April 2014. "Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales," says Lawrence Yun, chief economist at NAR. "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."

Instead, NAR cites the impact of the Truth-in-Lending Act and Real Estate Settlement Procedures Act's Integrated Disclosure rules on November closings. The new regulations from the Consumer Financial Protection Bureau were expected to prolong the time from accepted offer to closing, and November was the first full month in which closings were affected.

In an interview Tuesday with Bloomberg Business, senior economist Ryan Sweet at Moody's Analytics concurred with Yun's assessment. "When you see a decline of this magnitude and you can't pinpoint the fundamentals, the culprit is primarily likely going to be this new regulation,'' he told Bloomberg. "The underlying trend is improving. The tightening job market, modest acceleration in wage gains and very low interest rates are all positives for the housing market."

While single-family home sales fell 12,1% to a seasonally adjusted 4.15 million units, sales of condominiums and co-ops were up 1.7% from the previous month. For-sale apartment volume was also up 1.7% Y-O-Y, while single-family volume was down 4.6% from a year ago.

Down slightly across the board was the percentage of first-time homebuyers, which stood at 30% for November compared to 31% a month earlier. NAR thinks their numbers will tick upward in the future: a survey released last week by the association found that 94% of renters age 34 or under want to own a home eventually.

"Despite entering the workforce during or immediately after the worst of the financial and housing crisis, the desire to become a homeowner appears to be a personal goal for a convincing majority of young renters," Yun said last week. "Furthermore, there appears to be sizeable, pent-up demand for buying that currently remains untapped because of a variety of economic and personal reasons impacting many households."

The top two reasons given by renters for not currently owning was the inability to afford to buy (53%) and a desire for the flexibility of renting rather than owning (19%). Overall, 83% of current renters want to own a home, according to NAR's first-ever Housing Opportunities and Market Experience survey.