Sales of previously owned homes in the United States fell by 2.7% in October, another signal that the U.S housing market has past its peak.

The U.S. National Association of Realtors reported Monday that sales of existing homes and condominiums declined by 2.7% last month to a seasonally adjusted annual rate of 7.09 million units.

The decline would have been an even larger 3.2% without a spurt in sales in areas where people displaced by the Gulf Coast hurricanes have moved.

The boost in sales outside of the hurricane areas offset sales declines in cities hardest hit by the storms.

Even with the decline in sales, the median price of an existing home sold last month rose by 16.6% to US$218,000 compared to the median price in October 2004.

“This signals that the housing sector has likely passed its peak. The boom is winding down to an expansion,” said David Lereah, chief economist for the Realtors, in a release.

Lereah predicted that housing activity would cool further in coming months if, as expected, the U.S. Federal Reserve keeps pushing interest rates higher to combat inflation.

“We feel confident that housing is landing softly as rates continue to rise,” Lereah said.