The Bursting Of The Bubble

It's here!! AP (09.25.06):

"Annual existing home prices declined in August for the first time in more than a decade as sales fell for a fifth straight month. The year-over-year drop in median sales prices represented a dramatic turnaround in fortunes for the once high-flying housing market, which last year was posting double-digit price gains." Annual Existing Home Sales Prices Tumble

"'Pop goes the housing bubble,' said Joel Naroff, chief economist at Naroff Economic Advisors. He predicted prices will tumble farther as home sellers struggle with a record glut of unsold homes." Kevin Drum has more. Pictures too. UPDATE: Looking even bleaker in California, where "existing homes sales in August suffered the biggest year-over-year drop in nearly 25 years".