28.11.2006 20:00 Real Estate
The median home price declined 3.5 percent from October 2005, marking the third straight month in which prices fell and the largest year-on-year decline since records began in 1968.
Sales volume rose for the first since February but the inventory of homes for sale was also up, rising 1.9 percent to 3.85 million units.
Analysts had expected home resales to slow to a 6.15 million-unit pace from the 6.18 million-unit rate in September.
The nation's housing sector "appears to be stabilizing," said David Lereah, NAR's chief economist.
While the third consecutive drop in home prices was the first since 1968, Lereah said the adjustment signaled that sellers were setting more reasonable expectations and that the market was finding a balance.
"Prices continue to correct," he said. "That is a good thing. Lower prices bring sales back into the marketplace."
While overall sales stabilized in October, condo sales dropped 4.8 percent. "That is a segment of the marketplace that is experiencing some pain," Lereah said.
