Existing Home Sales Plunge to a 5 Year Low

In a correction like this, we expect to see new lows. The worse it gets now, the closer we are to the bottom of this correction. However, lower interest rates and lower prices will start to bring the buyers back to the table. The most difficult thing for a buyer is timing the market. You want to buy a home because you want the home and you pay a reasonable price.

Many buyers are looking for prices to go lower. I believe prices have already dropped significantly, sellers just don't believe it and have not priced their homes appropriately.

The follow article was posted on AOL finance today:
Existing-Home Sales Hit 5-Year Low
AP
Posted: 2007-09-25 10:11:46
WASHINGTON (Sept. 25) -Sales of existing homes, depressed by turmoil in credit markets, fell for a sixth straight month in August, pushing activity to the lowest point in five years. The National Association of Realtors said that sales of existing single-family homes dropped by 4.3 percent in August, compared to July. Sales at a seasonally adjusted annual rate dropped to 5.5 million units, the slowest pace since August 2002. The housing market has been battered by the steepest downturn in 16 years. Those problems were exacerbated in August by turmoil in credit markets, reflecting new worries about rising defaults in subprime mortgages. The median price of an existing home - the point where half sold for more and half for less - edged up slightly in August to $224,500, an increase of 0.2 percent from August 2006. It marked the first year-over-year price increase after a record 12 straight months of declining prices. However, many analysts believe that sales and prices will fall further as the housing market receives additional blows from rising default rates that are dumping more homes on an already glutted market and causing lenders to tighten standards. These factors have made it harder for potential borrowers to qualify for loans.
Read the full article from the link below:
http://money.aol.com/news/articles/_a/existing-home-sales-hit-5-year-low/20070925073909990001