Signals from the housing market are all over the map. On the bright side, the median sales price of homes is on the rise. But, at the same time, the Mortgage Bankers Assn. tells us that one out of every seven homes is now either delinquent or in foreclosure and will add to the housing inventory in 2010. The only explanation I can think of for rising prices amid cheap foreclosures is that the jobless rate is causing more expensive homes to come on the market.
The new wave of foreclosures isn't caused so much by tricky loans as it is by the high jobless rate. Since unemployment seems to be leveling off and is therefore poised to improve as the recession becomes a memory, I can only conclude that the increase in median sales price will pick up steam in 2010.
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