Most economists, however, called the drop temporary and said they expected sales to strengthen later this fall.
SHOOT: Yup, they keep saying that too themselves, that it's a temporary rough spot, which is why there are so many 'unexpected' cases. We'll see a long term drop down in average prices because credit has been wiped out, and now jobs. The value of money -dollars - soon to follow.
Home resales dipped unexpectedly last month, falling 2.7 percent from a month earlier, the National Association of Realtors said Thursday, reversing steady monthly gains since April. Most economists, however, called the drop temporary and said they expected sales to strengthen later this fall.
"It doesn't change the underlying trend of improvement," said Dean Maki, chief U.S. economist at Barclays Capital.
But even if sales do turn upward again, Maki and other economists don't predict prices will follow. Though prices have stabilized this summer, many economists are forecasting a downward turn over the fall and winter and expect prices to finally hit bottom early next year.
Sales of homes priced at over $250,000 were down nationally, with the biggest drop of nearly 40 percent coming among homes priced over $2 million.
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