I think its indicative of two things one represents a real decline and the other a shift in the mix. Asking prices have been falling along with sold prices as the new sellers entering the market are forced to meet the current price levels. The other is that the active homes on the market are skewed towards larger homes relative to the past. Prices per sq ft typically decline as homes get bigger as very high fixed costs are amortized across a larger denominator. Smaller/cheaper homes which have higher prices/sq ft are selling while larger/more expensive homes with a lower price/sq ft languish.
