The monthly National Association of Realtor pending home sales numbers are out, and they’re unchanged from last month. The index remains at 85.9 for the month of January and is the same figure that the NAR reported for December. It’s also the second-lowest reading on record.
The NAR also updated its market forecast. The group, known for being overly-optimistic, is projecting a 1.2% decline in median home prices, with a 6.1% decline in home prices alone. A modest turnaround in the second half of the year, however, is predicted.
As a closing attorney who works with investors, I expect price deterioration to continue for the foreseeable future, and real estate investors should adjust their investment strategies accordingly.
In separate, but not unrelated news: the Mortgage Bankers Association is reporting that foreclosures hit an all-time high in the last quarter of 2007. According to the MBA, two percent of all mortgages are in foreclosure.
Photo: More not so functional arrows, originally uploaded by Yolande....