Each year we write a Trends Report which encumbaces the trends that may impact that next year or foreseeable future of real estate.  After reading last years publication and doing some research here is some follow-up from lasts years section entitle "The Hangover"

One year late and countless headlines, this hangover has caused more than just a headache, but a crisis.  The web weaved from rising foreclosures and mortgage fraud has spurred a sub-prime meltdown that rivals the Savings and Loan scandal of the 1980's.  According to a report from the Wall Street Journal published December 10, 2007 the S&L crisis amounted to 3.7% of GDP, estimated loss from the sub-prime meltdown is approximately 3% of GDP or $400 billion dollars.

As banks tighten lending standards and investors stir clear of sub-prime mortgages a ripple effect occurs in other areas of the realestate industry.  First being the decline in the number of homes sold estimated to be under 5 million for the first time since 1999.  This is not due to a lack of buyers, but a lack of buyers that can qualify under the stricter lending standards imposed by banks and lending institutions.  The loss of the marginal buyer has spurred an exodus whose full effect will be felt in the first quarter of 2008 when many Association and National membership renewals are due.

Read more about real estate trends at www.RETrends.com