House prices drop for first time in decade

Median house prices fell in August from the year earlier. Last time this happened was in April, 1995, according to the National Association of Realtors.

The national median (mid point) sales price for existing homes fell 1.7% to $225,000 in August. Sales also dropped by half a percent to a seasonally adjusted annual rate of 6.3 million units.

Some observers of this market point to the fact that the sales drop in August was much less than the decline in July (4.1%) and see reason to be optimistic that sales volume seem to be levelling off.

Prices on the other hand, will continue to drop according to David Lereah chief economist of the Realtors Association. He predicts that they will recover next year.

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