Annual existing home prices dropped in August for the first time in 11 years. The median price of homes sold last month fell to $225,000. That figure is down 2.2% from July and down 1.7% from August 2005. The 1.7% drop is significant as it is the first year over year drop in average home price since existing home prices fell 0.1% in April 1995.

Here are some regional price figures for the last 12 months (August 2005 to August 2006):

• Northeast - prices dropped 3.9%
• West - prices rose 0.3%
• Midwest - prices dropped 1.1%
• South - prices dropped 2.6%

This is an extremely good time for you homebuyers to be buying a home.