Home Prices Drop After 11-Year Ascent

The New York Times reports:

The median price of a previously owned home fell for the first time in 11 years last month, and inventories of unsold homes swelled to levels not seen in more than a decade.

The number of existing homes sold also fell, but by only a small amount, suggesting that the sharp decline in home sales seen earlier this year has leveled off for now.

The National Association of Realtors reported today that existing home sales dropped 0.5 percent from July to August to a seasonally adjusted annual rate of 6.3 million units. That compares with a decline from June to July of 4.1 percent.

The median price in August fell to $225,000, down 1.7 percent from August 2005. That was the first time since April 1995 that the national median price was lower than the same month a year before.

Better luck next year.