There's a glut of houses on the market, which probably means home prices have further to fall.
Americans bought fewer single-family homes in July than in any month since 1995, and the number of houses on the market rose. That's according to figures for existing homes out today from the National Association of Realtors.
In a normal market, the number of houses on the market at any given time would take about six months to sell, Calculated Risk points out. Based on July's figures, the current inventory would take more than a year to sell.
The figures also suggest that the standoff between buyers and sellers is persisting, with buyers waiting for lower prices and sellers holding out. For those homes that did sell in July, the median price was actually a bit higher than it was a year earlier, despite the fact that the number of homes sold fell by 26 percent.
Note that these figures don't include newly built houses; July numbers for new homes will be out tomorrow.