Industry News

Forecast: Slower-than-expected home sales in ’06

National median existing-home price projected to rise 2.8%

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

The National Association of Realtors trade group has lowered its expectations for annual home sales in 2006. Existing-home sales are forecast to fall 7.6 percent this year to 6.54 million, while new-home sales are forecast to drop 16.1 percent to 1.08 million compared to the previous year. In the group's previous annual forecast, released Aug. 8, existing-home sales were expected to fall 6.5 percent this year while new-home sales were projected to fall 12.8 percent. If the latest forecast rings true, it would be the third-highest existing-home sales record on total and the fourth-highest total for new-home sales. Housing starts are projected to decline 9.6 percent to 1.87 million in 2006, compared to the August projection of a 9.1 percent decline. The market is experiencing "an inventory and price imbalance," the Realtor group reported. David Lereah, NAR's chief economist, said in a statement, "A year ago we had record home sales and tight supply with buyers bidding over the asking p...