Home Sales Dropped for the First Time in 11 Years Last Month

Home sales dropped for the first time in 11 years last month, spurred by the biggest glut of new homes on the market in more than a decade.

The median home price in August was $225,000, down 1.7 % from a year earlier.
It was the first year-over-year decline in median prices since April 1995, when that measure slipped only 0.1 %. And it was the biggest year-over-year drop since the record 2.1 % decline recorded in November 1990, when the nation was in recession.

While month-over-month declines in prices are not uncommon, year-over-year decreases in prices are a more serious sign of a slumping housing market. Even in other recessions, home prices generally have risen year-over-year on a national basis. The median price is the point at which half the homes sell for more and half sell for less.