Existing single family homes and condominium sales have now fallen for 6 consecutive months. January sales fell .4% from the previous month as sales clocked in at a 4.89 million annual rate. The sales rate was the slowest since 1999. Inventories of unsold homes climbed 5.5% in January to 4.19 million which is 10.3 months supply. This means it would take 10.3 months to sell all the unsold homes currently on the market based on the current sales rate.

During the peak of the housing boom, the supply of unsold homes was 4.5 months in 2005. The January supply is up from 9.7 months in December but down from the two decade record of 10.5 set in October. Sales of existing homes are down 12.7% in 2007 and are off 20% from their all-time highs set in 2005. The 2007 decline is the biggest sales decline in 25 years.

Prospective home buyers are holding out for deals as the national median sales price has declined 4.6% from a year ago to $201,100. Despite this national statistic the National Association of Realtors reported 73 of the 150 metropolitan markets they track have actually risen in value from a year ago. Florida, California, and Las Vegas have experienced huge price declines while smaller cities that never experienced a real estate bubble have risen in price over the past year. A few big city bright spots, two of which are in struggling California, include New York City, San Francisco, and San Jose. NYC results have been bolstered by foreign buyers of real estate in the city because of favorable currency exchange rates and the city’s high profile appeal.

In related news, Lowe’s, the home-improvement retailer, reported a decline in same-store sales, reflecting weakness in the housing market and economy as a whole. The most recent quarterly results were the steepest same-store sale decline in over two decades. When home prices were rising, homeowners were eager to put money into their homes by upgrading kitchens, bathrooms, etc. Now with prices falling many no longer see this as a good investment, others no longer qualify for home equity loans to pay for these projects.

Lowe’s management and most economists agree that a turnaround in housing is unlikely until late this year or after. Foreclosures are forecast to continue rising as rate resets continue through 2010. Low mortgage rates and possible workout plans can go a long way to stem the tide of rising foreclosures but results are yet to materialize as of this point.