According the Census bureau report seasonally adjusted new home sales were down 2.2% year over year. Delving into the data a little further shows a much uglier picture for the coastal market (where prices are the most inflated).
In the Northeast, home sales have fallen 29.1% from September 2004 to September 2005.
In the West, home sale ahve fallen 16.2% from September 2004 to September 2005.
The only area holding up the report is the South (the cheapest area in the US) where home sales have surged 14.1% from September 2004 to September 2005.
If the coastal markets were the forerunners to the rest of the nation's housing boom, then they may also be the leading indicator of the broader nation's housing downturn.