Existing Homes Sales Record Biggest August Drop-EVER But Prices Keep Inflating - The Wall Street Examiner

... The fact that sales are slowing from bubble levels could be an early warning that the current version of the housing bubble is peaking. As house prices inflate and household incomes stagnate, affordability issues are beginning to have an impact in many markets. The market can ill afford any increase in mortgage rates.

... In housing, volume precedes price. At the top of the housing bubble, sales volume peaked in 2005. As demand dried up and sales volume began to tank, prices peaked in most markets in 2006. The price crash began in 2007 as demand continued to fall.