We're not there yet.  We can expect six to twelve more months of declining home prices.  Although not all gloom and doom, "Home prices have already tumbled 20% from their peak three years ago, and will probably sink another 10% before stabilizing. Some 12 million homeowners currently owe more on their mortgages than the houses are worth..." as reported in June Fletcher's article today in The Wall Street Journal.

Although Annapolis, Anne Arundel County, and much of Maryland has been relatively immune from foreclosures, they do exist.  Everyone knows someone (whether they realize it or not) who may be in trouble and might be behind in their mortgage and facing foreclosure.  This morning (10/29/08) there are 4,822 active listing in the MLS in Anne Arundel County of which 95 home (1.97%) are flagged as one of foreclosure, HUD-owned, preforeclosure, or REO property.  Compared to Prince Georges County where there are 8,269 active listings in the MLS this morning of which 377 (4.56%) homes were flagged in one of the four troubled status.  Of course these statistics don't reveal just how deep the problem may run.  When searching for "3rd party approval" in the MLS remarks, 229 (4.75%) active listing were returned indicting that these homeowners may be distressed.

While the numbers seem remarkably low, the selling season for real estate wains as we approach the end of October, followed by the presidential election and then the holidays and really cold weather not far behind.  What can we expect for the fourth quarter?  Falling sales and falling temperatures.  Overall, the real estate market well be headed for hibernation and not awaken until late spring!