We had this same problem with DD5 this year. She also starting words and books by three, but didn't aquire fluency as quickly as your son.
When she went to kindergarten, the teacher would not send her to enrichment because others were reading and she was not.
The story is on another thread, but long story short, I got involved and the reading specialist assessed her.
The specialist saw she could read, but she really had been given K teacher the saucer eyes and saying "I just don't know that word".
When K teacher got the results, she just smiled sweetly back and told DD she knew she could do it.
Once the jig was up, DD started reading and advanced very quickly to fluency in just a month or two.
A. She thought if she started reading, I would never read to her again. Of course we still snuggle up and I read to her. Sometimes, I'll read a page, then she will, but I'll still read whole books to her.
B. It was a confidence issue.
I'm never sure how they get the ideas they do, but it usually works itself out.
Good luck Junior.
Incog