From the Wall Street Journal (as reported by media outlets far and wide today):

Home resales dropped a record 27.2%–nearly twice as much as analysts had expected–to an annual rate of 3.83 million in July, the National Association of Realtors said Tuesday. Meanwhile, inventories rose to 12.5 months from 8.9 months in June, pressuring already depressed home prices.

These numbers were no surprise to me as I reported on Stockton Real Estate data back on August 9th.  The key take away to these new numbers is that inventories continue to rise and buying activity as slowed.

Meanwhile, the more active sellers are taking price reductions and new sellers hitting the market are price lower than their competition.