2008 is off to a very weak start this year with home sales down 33% compared to 2007. I could take a guess and say that the economic news has been turbulent and the weather this winter has not been very conducive to home buyers.

There are some positive signs in the market data.

2007 wrapped up with abysmal sales performance in December. Sales were down 26% from December 2006. This may be due in part to the winter weather we have had which has not made it easy or enjoyable to go out home shopping. Of course buyers are still waiting for the market to bottom out and many are waiting to see where the economy is headed.

2007 has been a difficult year for everyone: home buyers, home sellers, real estate agents and mortgage professionals.

The markets have had to weather a lot of bad news: rising energy prices, subprime mortgage failures and drastically increasing foreclosure rates. The negative market events were tempered somewhat by an otherwise healthy economy and interest rates that stayed low. At year end interest rates were around 6.25% for 30 year fixed rates.

Uncertainty was the theme for the markets in 2007