Do you want the good news or bad news first? Personally, I like to end it on a high note, so, since I really 
can't take a pole on what you want, I will start with the "uglies".
- Home prices have fallen a record eight consecutive quarters.
- United States homeowners have lost a cumulative $3.3 TRILLION in home values last year, a good portion of that in the fourth quarter of 2008 ($1.4 TRILLION).
- Foreclosures in 2008 were almost 20% of all closed transactions.
- The latest surge in refinancing has almost been reversed as a result of pressure on mortgage rates.
- New mortgage applications remain stagnant.
Now, don't start pulling the covers over your head just yet. I am a big believer in silver linings...and there is ALWAYS a silver lining. So, here is the good news.
- Housing inventory is finally on the decline. This is mainly due to the predominant foreclosure market.
- New housing starts are down nearly 50%, which is paradoxically good news. We need the inventory to be realistic.
- Affordability is at a nearly 40 year high.
- Sales jumped 6.5% in December with a 6.3% increase in the Pending Home Sales Index.
- January foreclosures fell 26% from December while a moratorium was put on Fannie Mae and Freddie Mac foreclosures
When asked by buyers aren't buying, here are the interesting, but not surprising results:
- 36% have concerns about the economy and jobs.
- 29% can't sell their existing homes.
- 20% are worried about further home price declines.
- 10% have credit or qualification issues.
- 5% lack a down payment.
Where do we go from here? We work. We plan. We pay attention to our careers. There is an end to this epic economic story. We won't know when we have gotten through it until we have. So, until then, we will do as well as we think we can.
This information was supplied by Liz Ann Sonder with Charles Schwabe and Company as well as a presentation by Leslie Appleton-Young (Chief Economist for the California Association of Realtors).
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