According to The National Association of Realtors, existing home sales slipped by 0.5% in August 2006, declining the 5th consecutive month. Median price dropping to $225,000 comparing to August 2005, the first time decline year over year in more than 11 years.

Median price decline indicate that sellers are willing to lower their price as they aware the trend.

Inventory of unsold homes rose to record high of 3.92 million units. At the current pace, it represent a 7.5 months inventory. The highest level since April 1993.

Construction of new house also plunged by 6% in August 2006.