Existing home sales (EHS) and prices are still falling as inventory swells to 10.5 months supply.  NAR reports for close of SEP '07, home sales nationwide fell 8% from prior month and prices softened 4.2%. The annualized rate of 5 million units in SEP '07 is nearly 20% below the 6.23 million units peak level in SEP '06.

The chart below shows annualized rate of EHS continue the free fall.

NAR home sales SEP '07

Amongst the nation's four regions, the south saw the least decrease in home sales, 6%, but the highest price decrease of 5.5%.