The realtors trade group has the August numbers out. "Median sales prices of existing homes fell from year-ago levels in August for the first time in 11 years and just the sixth time in the past 38 years, the National Association of Realtors said Monday. Sales have fallen five months in a row and in nine of the past 12 months."

"The median price of an existing home fell 1.7% year-over-year to $225,000. It's the first time since April 1995 that median prices have fallen on a year-over-year basis. It's the second largest decline in the 38-year history of the realtors' survey, exceeded only by a 2.1% drop in November 1990."

"'The price correction is a welcome development,' said David Lereah, chief economist for the realtors group. 'The price drop has stopped the bleeding,' Lereah said. 'Sales have hit bottom,' he said. 'Sellers are finally getting it.' Lereah expects prices to continue to drop for the rest of the year, which would keep sales from falling further."

"Inventories of unsold homes rose 1.5% to 3.92 million, a 7.5-month supply at the August sales pace, the most since April 1993."

"NAR President Thomas M. Stevens, said sellers need to price to current market conditions if they want to sell within a reasonable amount of time. In some areas home sellers are not making sufficient adjustments in their listing price, so their homes are staying on the market and contributing to the build up in inventory, said Stevens."

"'We've been anticipating a price correction and now it's here,' Lereah said."

"'The housing bubble has burst and housing is in full retreat,' said Steven Wood, president of Insight Economic. 'What was a sellers' market has become a buyers' market. The housing correction still has a long way to run.'"

"'How long we can sustain consumption on the basis of what we have sustained it in the last several years: by taking money out of your house,' Joseph Stiglitz, Columbia University economics and Nobel laureate, said."

From MarketWatch. "Higher inflation remains a bigger risk for the economy than a sharp slowdown of growth, said Richard Fisher, the president of the Dallas Fed bank on Monday. 'I continue to fret more about inflation than I do about growth,' Fisher said."

"Fisher dismissed the benign August PPI report released last week as unreliable. The best gauges of inflationary pressures 'are not yet comforting,' he said."

"Fisher's remarks lacked that sense of concern. He noted housing was undergoing a 'serious correction..In a few local housing markets, especially in the coastal areas..home prices have peaked and are beginning to decline.'"

"But he also said third-quarter growth would be only a touch below the 3 percent annualized pace of the previous three months, while highlighting factors supporting the economy. 'We are fortunate that the rest of the economy is healthy and robust.'"