Home sales in March remained flat according to a recent Los Angeles Times article. The median price of a home hovered around $280,500— a 2% increase compared to February. However, this price is still 1.6% les than that of March 2010. Sales were also down 5.2%. Not surprisingly, about 36% of these sales were for foreclosed homes.
Several real estate professionals, such as DataQuick president John Walsh, think that these dismal figures foreshadow the market’s direction for the rest of 2011. This prediction makes a lot of sense. I agree that the market isn’t going to recover anytime soon. Foreclosures will continue to go up. Fueled by an excessive supply of homes for sale, I also think homes prices will keep falling. The market for real estate is still on a very dangerous and unpredictable path.
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