Due to the expiration of the Homebuyer Tax Credit sales of existing homes were expected to fall and fall they did. During the month of July home sales dropped 27.2% in a monthly comparison, according to the National Association of Realtors (NAR).

Sales are currently at the lowest level in over a decade, and are expected to continue at this pace for months to come. According to Lawrence Yun, Chief Economist at NAR, "Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place it in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years.

Home prices on the other hand are starting to rise. The national median existing home price was up in an annual comparison by .7% in July, while distressed home sales remained firm from June accounting for 32% of the home sales during the month of July.

Yun went on to say, Thanks to the homebuyer tax credit, home values have been stable for the past 18 months despite heavy job losses, over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.

This leaves the opportunities for potential homebuyers unlimited! Mortgage rates are at record lows, home prices are remaining stable and there is no limit to the homes on the market at the moment. If there was ever a time to purchase home, it's now, these circumstances won't last forever.