If we measure what is standard off of a peak year, we will be disappointed. We should start getting concerned when the volume drops below 6 million resale units (annualized) for three months. It did not. Compared to what economists on Bloomberg expected, there was about a 4% variance. Last month had very strange weather, and the variance is equal to about 1 days sales. Before panicking, I would wait for the reports over the next few months. The OFHEO report for the first quarter comes out around the first of June. It is a more reliable indicator.

We had over 20 years of real estate appreciation and building over the span of 3 years. We borrowed from the future both the gains, and the jobs. Now we have to give them back. It was a scam that was a massive Ponzi scheme, the loan companies were covered as long as the appreciation was hard and fast enough to hide their sins. Now that isn't the case. The fooled trick loan buyers can't "refi" there way out of trouble when their house has gone down in value.. So yes, this is some hard stuff we have happening, and if you know anyone involved with being a mortgage broker or originator, take a poop on their lawn, they deserve it. And real estate agents, thinking apprecation numbers like this could be sustained, deserve similar treatment. We have to give back all those advances, THEN we will be at the bottom.

I agree !!!!