It doesn’t take a PhD in marketing to understand the importance of the real estate market to our area’s financial stability. After all, when the banking and real estate crisis occurred in 2007-2008, we all witnessed its harmful effect on Lake Martin property values.

However, the New Year has brought a ray of sunshine with the news that foreclosures declined in the 4th quarter of 2010 by nearly 35 percent. What this means, according to Leonard Zumpano, professor of finance at the University of Alabama, is the real estate market could be strengthening as we enter 2011. “If home sales are stabilizing and prices are beginning to firm up, that would be a good sign,” said Zumpano.