Sales of previously owned homes fell 27.2% from June to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday, the lowest level since the industry group started its tally in 1999. (Source: Wall Street Journal) Job growth is going to be the key to economy recovery. Although the number of home sales went down, I don’t see any drastic reduction in home prices.

Everyone keeps talking about great bargains of $20,000 houses available in Detroit. If you are not living or working in Detroit area, what is the point of buying those houses anyway? Some may try them as investment properties. However, everyone needs affordable homes in the area where they have a job. If you are in the market for home in San Francisco bay area, you would know how difficult it is to find a decent single family house for less than $600,000. That’s not a bargain. It’s just not affordable at all for many of us.

I don’t see a dramatic fall in home prices anytime soon. The prices may stabilize in the next 12 weeks. I won’t be surprised if the prices move up a little bit next year. If you have a stable job and are able to find a decent home at a fair price, it’s a good time to buy the house especially given the low mortgage rates.

Related Link: Is it the right time to buy a house?