In reading the Wachovia report, their  Topic of the Week was “How Far Will Housing Prices Fall?”.    At the end of the article it said , “Our forecast for the NAR (National Association of Realtors) median price series would be for a peak-to-trough drop of around 17 percent.  As far as timing goes, it looks to us that at least one-half of the peak-to-trough price decline has already occurred and that we should see an outright bottom either late next year or in the first part of 2010.”  You can view the whole article at www.wachovia.com/economics.  Go to the report for 8.01.08 on page 6. 

In viewing the market here in Alexandria, this morning’s inventory is at 646 residential listings and 391 lakehomes.  Last year on July 13th, we had 663 residential listings in the multiple listing service and 417 lakehomes respectively.    We have less inventory at the peak this year than last.  Has our market started to turn around, especially with less sellers deciding to put their homes on the market?  Time will tell.  (The Fed meets on Tuesday)

Also, in same report:  Residential Construction has fallen 26.4 percent over the past year and has tumbled 44.9 percent since peaking in the Spring of 2006.  Non-residential construction increased 0.4 percent in June and is up 10.8 percent over the past year.

Statistics from Greater Alexandria Area Multiple Listing Service and Wachovia Economics Group report from August 1, 2008