New home sales fell 3.9% last month despite predictions of a 6% increase! These are the lowest levels in almost 7 years. Unsold new home inventory has now risen to over 8 months and there are now expectations that this number will grow over the next several months due to the recent sub prime problems.

The median home price fell by .3%. Don't look for a rebound in 2007. We might not see a recovery until possibly sometime in 2008.

So, what does this mean for homebuyers? Most likely a great opportunity to purchase a new home. The combination of lower housing prices couple with lower interest rates will most certainly make many more homes affordable to people who once could not afford them.

Yes, credit guidelines have and will continue to tighten over the next several months due to the fall out from the sub prime market, but the true "core" buyers should see little effect by these changes and once they realize this and see the opportunities that this market have truly presented them...they will return!

If you carefully look at the facts this might be the best opportunity for a home purchase that we have seen in the past 5 years!