The most recent statistics by the National Association of Realtors will make any current home seller and real estate professional very jittery!

If you were a holding out from joining the real estate double dip club…this new data will 1000% convince you.

* Contracts signed to buy existing homes dropped off a cliff down month over month by 11.6%.  This means that the number of homes expected to close..the best predictor of the future health of the real estate market…are showing very dire signs.

* Year over Year (April 2010 vs April 2011) pending home sales are down 26.5%.

* No surprise with the huge decrease in pending home sales…Fannie Mae backed nearly 20 Billion dollars in few mortgages. Again, fewer home sales…fewer mortgages needed.

* HFA Mortgages delinquencies hit an all time high of 7.5%. That isn’t a huge surprised because most of their loans were originated during the boom.

A number of economists had predicted a double dip in home sales, and now the data supports those predictions.  The forecast is for the double dip in home values to run its course through 2011.  We are expected to see a break from this bad news in the Spring of 2012.

What does this mean for the real estate market?  We will continue to see short sales and bank foreclosures dominate the market, which of course translates into great deals for investors and home buyers.  In Southern Maryland, where there is an inventory shortage of available rental properties, the market is hot to scoop up homes that have mortgages significantly lower than what the same home rents for.

If you or someone you know is thinking about buying or selling a home, or if you are just looking for more information about the current real estate market, call us at 301-870-1717 or e-mail [email protected].