NEW YORK (CNNMoney.com) -- Home prices posted their biggest drop on record in September while sales fell for the sixth month in a row, a real estate group said Wednesday - the latest signs that the housing market is still weakening.
The National Association of Realtors said sales of existing homes fell to an annual pace of 6.18 million last month from 6.3 million in August, marking the sixth straight monthly decline in sales.
Economists surveyed by Briefing.com had forecast a rate of 6.25 million in the most recent period.
The median price of a home sold in September fell 2.2 percent to $220,000 from $225,000 a year ago. It was the biggest year-over-year drop since the record 2.1 percent decline recorded in November 1990, when the nation was in recession..
The group's August sales report was the first in 11 years to show a year-over-year decline in the price of a typical home.
I don't have the interest to research the number of people that have interest only home loans or balloon mortgages but this is a bad sign for the economy. The housing market is a major component of the economy and when it is trending down there will be a lot of fallout.
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