I just read the statistics for home sales across the country for 2007.
Yes – 2007 home sales did see a decline from the previous year. However, even with the decline in home sales, 2007 was still the 5th highest year on record!
From the Daily Real Estate News | January 24, 2008:

Existing-home sales – including single-family, townhomes, condominiums and co-ops – slipped 2.2 percent to a seasonally adjusted annual rate of 4.89 million units in December from a pace of 5.00 million in November, and are 22.0 percent below the 6.27 million-unit level in December 2006.

For all of 2007 there were 5,652,000 existing-home sales, the fifth highest year on record; however, the total was 12.8 percent below the 6,478,000 transactions recorded in 2006.

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