Fears of a major market correction are yet again in the news, this time triggered by data released by the National Association of Realtors on August 23rd which reported that sales of previously owned homes just hit a two year low. Prices are starting to flatten in many markets and for-sale signs are languishing on front lawns longer. Find more information at the National Association of Realtors website, or view the full report here. Total existing home sales were down 4.1% from June, and were 11.2% below the July of 2005.

Investors should keep in mind that real estate markets are regional by their very nature, but a major correction in overheated markets (CA, FL, AZ and NV, etc) may have implications nationwide in terms of consumer confidence, economic growth, and interest rates.