foreclosures and short sales, short saleForeclosures increased in 2008, and the foreclosures and short sales are really dragging down the market. Over the holidays, I had some discussions with intelligent people, and we believe that some of the economic fallout has to do with the news media. Consumer confidence is a major driver in the economy, and when people stop spending because they are fearful of losing their jobs or income, they are creating a weaker economy. The foreclosures and short sales are the result of resetting loans or job loss. Job losses are occurring across all the job sectors, in almost all states.

It will be interesting to see if 2009 brings job growth, once Obama takes office. It's going to take a lot of effort on the new administration's part to get this economy moving forward once again. It's going to be bleak in real estate until all the foreclosures and short sales are absorbed, but it will eventually happen. It will take a stable job market for many people to even think about increasing their discretionary spending, but once they do, it will have a positive effect on all sectors of the economy. foreclosures and short sales, short sale