The National Association of Realtors reported that sales by homeowners fell in October 2007 to an annual pace of 4.97 million, which was the previous record low since the trade group started tracking sales on that basis in 1999.

Economists surveyed by Briefing.com had forecast that sales would slow to an annual rate of 5 million in October.

The median price of a home sold during the month fell 5.1 percent to $207,800 from $218,900 a year earlier. It marked the largest year-over-year drop in prices and the 15th month in the last 17 in which that key measure posted a decline. Before the current slump in housing prices began, it had been 11 years since prices fell compared to a year earlier.

Here in the Triangle area, we continue to see decent sales in the $200,000 to $300,000 range but homes above the $300,000 are sitting much longer because of an abundance of inventory.

New home inventory also continues to increase with many "spec" home sitting on the market. At some point, builders will begin slashing prices just to get rid of inventory and that could affect the average sales price in the area when that happens. The further downside of that is that resale homes will have to lower their prices in order to compete. - Source By Brian Pate On Real Estate