From Bloomberg

The median resale price fell 13 percent from a year before, to $181,300, “probably the largest price decline since the Great Depression,” National Association of Realtors Chief Economist Lawrence Yun said in Washington. Sales slid to an annual rate of 4.49 million, lower than forecast.

Sliding property values mean more Americans will be under water on their mortgages, likely leading to a further increase in already record foreclosure rates. Along with the wealth destruction from slumping stock portfolios, they also undermine consumers’ purchasing power.

Why is this good news?  Because a significant decline in home prices had to happen. 

All the mechanisms designed to prop up the housing economy merely delays the inevitable.  It is best to deal with the bad stuff now so the economy can find an equilibrium and stabilize.  The quicker we take the pain, the quicker we will clean out the excesses and get to the recovery.