By: Judy Price

I don’t know about you, but I find it challenging to stay on top of all the housing and economic data that comes our way each week. Is there a light at the end of the tunnel? Or are we still in for a long, slow recovery?

Below are the highlights from the latest industry reports and my interpretation of what it all means for residential real estate.

Case-Shiller – April 2009

• While home prices continue to decline, it appears that the speed of decline is slowing
• Nine cities managed to avoid month-to-month decline in prices (which is an increase from the three cities that avoided the decline last month)
• Home prices are back to 2003 levels
• Stabilization may be occurring in some markets, but others still have a long way to go
• In Atlanta, the index reported a .3% home price increase from March-April

National Association of Realtors (NAR) May Findings

• Existing home sales for all product types rose 2.4%; this was the first back-to-back monthly gain since September 2005
• Distressed property sales made up 33% of all transactions.
• First-time homebuyers accounted for 29% of all transactions.
• Pending home sales were up nationally 6.7% from April.

Commerce Department May Findings

• New home sales declined .6% from the previous month, which is down 33% from May 2008.
• Median sales price for new homes was up 4.2% to $221,600.
• There’s a 10 month supply of new homes on the market, down 2% from April.
• In the South, new home sales fell 8.5% from April.

Realty Trac/Foreclosure Data

• Georgia ranked #7 in nation for foreclosures.
• GA foreclosures down 1.27% from April to May 2009; nationwide foreclosures down 6%.
• Foreclosure filings exceeded 300,000 for the third straight month in May.
• US Foreclosure filings are forecast to hit 1.8M in the first half of 2009.

To summarize these reports, here’s what I see happening……

Glimmers of Hope: First-time buyers are out in the market (taking advantage of the $8,000 tax credit); existing and pending home sales increased month over month; months of supply is declining; in some markets, the speed of decline of house prices is slowing.

Economics to Watch: An increase in unemployment, oil prices or interest rates could negatively affect a housing recovery.

The White Elephant: A continued increase in unemployment will fuel the foreclosure market. The first wave came with sub-prime loans and in homes less than $200,000; as unemployment rises, so too does the number of foreclosures on homes more than $200,000.