Dr. Lawrence Yun, Chief Economist for the National Assoc. of Realtors, presented the chart below showing that the number of existing home sales has dropped back to 1998 levels. However, now there are 25 million more people living in the U.S. than in 1998. Pent up demand will eventually stop the fall in home sales and start to push them back up.
Dr. Yun also mentioned that monthly mortgage payments for a median priced home in relation to a median income household incomes are also back to 1998 levels at 19% with todays historically low interest rates.