I don't like to be sending out negative messges but its important that buyers and sellers know the STATE of the market.  Just like the president does his state of the union message its important to know what is happening around the country in the real estate world.  If you have your home listed and want to discuss these stats, call me.  If you are considering a home purchase and want to know what these stats mean to you, call me.  I look forward to hearing from you.  Thanks, Dave

Existing-home sales down in March

Sales of existing homes fell to a 6.12 million annual rate, an 8.4 percent decrease from February's revised 6.68 million annual pace, the National Association of REALTORS said Tuesday. February's rate was originally estimated at 6.69 million. It was the largest decline in sales since 12.6 percent in January 1989. Sales are down 11.3 percent in the past year.

The median home price was $217,000 in March, compared with $213,600 in February. The March price was 0.3 percent below $217,600 in March 2006.

Inventories of homes fell 1.6 percent at the end of March to 3.75 million available for sale, which represented a 7.3-month supply at the current sales pace. There was a 6.8-month supply at the end of February, revised from a previously estimated 6.7 months.

Single-family home sales dropped 9.5 percent to a seasonally adjusted annual rate of 5.32 million in March from 5.88 million in February, and are 11.9 percent lower than the 6.04 million-unit level in March 2006. The median existing single-family home price was $215,300 in March, down 0.9 percent from a year earlier.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 800,000 units in March, the same as in February, and are 6.7 percent below the 857,000-unit level in March 2006. The median existing condo price was $228,200 in March, up 3.2 percent from a year ago.

Regionally, existing-home sales in the South declined 6.2 percent to an annual sales rate of 2.41 million in March, and are 9.7 percent below March 2006. The median price in the South was $180,700, up 0.4 percent from a year ago.

Existing-home sales in the Northeast fell 8.2 percent to a level of 1.12 million in March, and are 5.1 percent lower than a year earlier. The median existing-home price in the Northeast was $268,600, which is 0.7 percent lower than March 2006.

Existing-home sales in the West fell 9.1 percent in March to an annual pace of 1.20 million, and are 16.7 percent lower than March 2006. The median price in the West was $330,600, down 2.9 percent from a year ago.

In the Midwest, existing-home sales dropped 10.9 percent in March to a level of 1.39 million, and are 13.7 percent lower than a year ago. The median price in the Midwest was $160,400, down 0.2 percent from March 2006.

David Seiders, chief economist for the National Association of Home Builders, has just released The Seiders Report, an analysis of housing economics. According to Seiders, key findings regarding the housing market are:

* The subprime mortgage debacle has prompted tighter mortgage lending standards in the subprime and Alt-A components of the home mortgage market. NAHB's surveys of builders are documenting adverse impacts on both home sales and sales cancellations.

* A record volume of vacant (unoccupied) housing units is weighing heavily on both single-family and multi-family housing markets, and historical norms suggest an excess of about 1.3 million vacant units on the market.

* Deterioration of the supply-demand balance in housing markets has downside implications for house prices and has prompted downward revisions to NAHB's forecasts of home sales and housing production for the balance of 2007-2008. However, we're still showing a gradual recovery process beginning around mid-2007.

* Massive uncertainties about the likely adverse impacts of the emerging mortgage market problems on both the effective demand for homes and the dimensions of the inventory overhang (via foreclosures) have created an unusually broad range of risk around NAHB's current baseline (most probable) housing forecasts