Existing home sales volumes are down 30% from their mid-decade peak and are now at 1998 levels, according to John Burns Real Estate Consulting (JBREC). Of all the variables graded for the overall report, housing supply scored an F due to the oversupplied nature of the market.

As HousingWire previously reported, while the decline is significant, it could be worse, the firm said. Sales volume is “propped up” by government intervention — the homebuyer tax credit, high volumes of Federal Housing Administration (FHA)-ensured mortgages, Freddie Mac (FRE: 1.33 +2.31%) and Fannie Mae (FNM: 1.07 -2.73%) bailout, and Federal Reserve’s mortgage rate intervention — and investor purchases exceed 2005 levels as a percentage of total activity.

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