According to Suzy Trotta, local real estate blogger, home sales are down over 7% from 2010 (10,133) to 2011 (9,386). In 2006, over 17,000 homes were sold and home sales have declined every year.

Home sales prices are declining as well.

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The average sales prices for 3 BR (-9%, $152,900 to $139,200), 4+ BR (-2%, $285,300 to $279,800), and Condos (-6.6%, $154,000 to $143,900) are down from December 2010 to December 2011.

I'm pretty sure these numbers are not unique to the Knoxville area. Trotta finds a glimmer of hope in the listings numbers in that the months of supply is down to 18 months. "This is good news, because fewer listings should theoretically help us get our inventory down, which will then get prices back on stable footing."

However, it would appear the numbers are sort of like the unemployment numbers. How many homes were taken off the market because they didn't sell? How many homes are now for sale by owner and not on the MLS?

Nationally, "total sales last year were less than the 323,000 sold in 2010, making it the worst year on records dating back to 1963."

How low will the housing market drop?