Despite overall strength in median home prices, the number of homes sold in June was way below June a year ago. Many cities had less than half the number of homes sell in June 2006 versus June 2005.

I still haven’t figured out how home prices in some cities can increase at the same time the number of homes for sale increases.

Notwithstanding any economic mysteries, prices are predictably softer in the second half of the year. We’ll see fewer price increases and more price declines from here through December.

I should add that even though sales were weak in June, if you look at January through June, sales were probably the third best on record.