Home values for 2007 expected to decline

The National Association of Realtors reported that overall home prices are expected to decline this year for the first time since they began tracking this in 1968. The expected median drop in values is 1%. They have been adjusting numbers for this year downward since last year at which time they expected a 1.2% increase overall.

As expected, the vast majority of home purchases in the current market are long term buyers. There are still investors taking advantage of short sales and foreclosure opportunities but they are a minority. Now is a time to be cash prudent and hang on to your equity.

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