The number of existing home sales declined in July to the lowest level since 1999. And while some were surprised by this news, the truth is that many in the industry were expecting it all along.

While the now expired "New Home Buyer Tax Credit" created some urgency and helped stimulate existing home sales at the beginning of the year, the fact is that all the federal government helped to do was to pull inevitable summer home sales forward and delay a recovery. Anyone watching what happened with the auto manufactures last year could have seen this coming.

The one bright spot of the report released today, however, was that the national median home price for all housing types was $182,600 in July, up 0.7% from a year ago. Sales of distressed homes — those sold out of a foreclosure or when the seller is in default — accounted for 32% of sales in July, unchanged from June. These are the facts that you should be concerned about as a buyer or seller.

As home deliquesces continue to rise throughout 2010, foreclosures will continue coming to market. The good news is that we have seen a brief stabilization of the number of foreclosures. The better news is that prices have begun a solid trend of stabilization even with over a third of the homes sold being in default.

So what does this mean to you? As a buyer, don't expect prices to continue their slide throughout the rest of the year and into 2011. Prices have decreased dramatically over the last 2 years and we are seeing solid evidence that prices are stabilizing in markets such as Coeur d'Alene. Sellers, get creative if you can. Inventories are high and you need to do something to set your home apart from the others. Maybe a fresh coat of paint or stain on the siding or even some new flowers in the yard can help make the difference.