Record Housing Sales drop, in part due to consumer confidence...

Reading the whole article from CNN Money on the Home sales: Worst drop in 18 years is highly recommended. It suggests part of the slump is due to a tightening in sub-prime lending but it also suggests that fear on the part of some home buyers given the perception that with the economy now is not the time to purchase a home also plays a part in the slump. Weather is also being blamed, but realistically I think that is only a small factor if one at all.

Sales of existing homes fell 8.4 percent to an annual rate of 6.12 million in March from February's 6.68 million rate, the National Association of Realtors said. It was the biggest one-month drop since January 1989. Economists surveyed by Briefing.com had forecast sales would fall to an annual rate of 6.45 million in March.

Regardless of what the cause of the slump is, if it continues into the next month it will be a larger issue than if it turns out to be a one month fluctuation.