The National Association of Realtors (NAR) announced that existing home sales rose slightly in October, but the median price of homes fell a record 3.5 percent.

David Lereah, NAR’s chief economist said existing home prices would continue to drop as sellers decide to lower home prices in order to sell. But he also said that the fundamentals of the housing market were beginning to improve and he expects to see modest price gains by the first quarter of next year.

We’ll see.

Here’s the press release:

Published: Nov 28, 2006