Stanley, who thinks the worst is almost over for the housing industry, admits the figures are " a little bit worrisome," but adds the data is a bit deceiving because they "tend to lag a bit"
Bad weather earlier in the year may also have distorted the figures.
The subprime meltdown is something we have to look out for" in the months ahead, but Stanley doesn't think it will have much of a knock-on effect. He's ruling out another "Big letdown" in prices, saying sales won't go much lower.
You won't find any such optimism from Larson, who says these are "very disappointing sales figures."
"The real bugaboo as far as I am concerned is supply", he says, adding it is "very, very high vs. history."
"We need to see prices come down further, " Larson says with considerable conviction "to a level the average family can afford" without unusual financing.
As for a recovery, keep waiting. Sometime in 2008 the "situation will be better."
The S&P/Case-Shiller home price index released Tuesday showed prices are down 1.5% in 10 major cities in the past year, the fastest decline in 13 years.
David Blitzer, chairman of S&P 500 Index Committee, discussed the findings on "Morning Call with Erin Burnett.