My blog in September 2007 stated that 26% of the real estate listing inventory were either foreclosures, notice of defaults, short pays or REO’s. Now that percentage has increased to over 56%. The market is still bracing for a wave of new foreclosures by spring of 2008. Bank of America’s announcement of its plans to purchase Countrywide Home Loans is a good sign for the real estate market, in my opinion. It says to me that Bank of America is betting that the market is getting close to hitting bottom. Personally, I am seeing an increase in sales activity and hearing the same from others in the business.

On another very important note - mortgage interest rates just came down to as low as 5%.