March Existing Home Sales Drop, Hope for Recovery Sees Setback

That's just one number, though. Don't forget that the median sales price has dropped sharply, year-over-year, from $200,100 to $175,200, down 12.4 percent. It is up slightly from $168,200 in February.

The NAR tried to put a positive spin on the numbers, with Lawrence Yun, NAR chief economist, saying that despite the drop, the market appears to be stabilizing. Why? There aren't huge spike, but rther smaller monthly ups and downs in the housing numbers:

"The share of lower priced home sales has trended up, indicating a return of many first-time buyers.

"Sales in the upper price ranges remain stalled because of higher interest rates on jumbo loans."

However, despite all this, the overarching problem is that many people with loans are underwater, and sales are impossible, or at least painful, for such owners. Foreclosure continues to be a big drag on the market.