Annual Existing U.S. Home Sales Prices Tumble (Martin Crutsinger)

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By MARTIN CRUTSINGER -- Associated Press

Sept. 25, 2006 -- Annual existing home prices declined in August for the first time in more than a decade as sales fell for a fifth straight month.

The year-over-year drop in median sales prices represented a dramatic turnaround in fortunes for the once high-flying housing market, which last year was posting double-digit price gains.

"Pop goes the housing bubble," said Joel Naroff, chief economist at Naroff Economic Advisors. He predicted prices will tumble farther as home sellers struggle with a record glut of unsold homes.

The National Association of Realtors reported Monday that sales of existing single-family homes and condominiums dropped 0.5 percent last month to a seasonally adjusted annual rate of 6.30 million units. That was the fifth straight monthly decline and left sales 12.6 percent below the pace of a year ago.