New Home Prices Drop 9.7% From a Year Ago,Largest Drop in 35 Years

Bloomberg reports:

The median price of a new home declined to $217,100 in September from $240,400 a year earlier, today's report showed. It was the biggest decrease since an 11.2 percent year-over-year drop in December 1970, the Commerce Department said. The median price was the lowest since $211,600 in September 2004.

The largest drop in 35 years.Markets don't usually turn on a dime.The probability of the new median home price being lower next year this time is good.The housing industry will be laying off a lot of people which should affect the demand for homes.