Industry News

NAR forecasts big slide in new-home sales, starts

Median home prices expected to fall this year, rebound in '08

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The National Association of Realtors expects new single-family home sales to fall 18.9 percent and single-family housing starts to plummet 23 percent this year from 2006 levels, according to the group's latest forecast. The median price of new homes is expected to fall 2.3 percent this year, with the median existing-home price falling 1.2 percent compared to 2006, the group also reported. Existing-home sales are expected to fall 6.8 percent this year to 6.04 million, compared with 6.48 million in 2006, and to rebound to 6.38 million in 2008. The forecast calls for new single-family home sales to reach 852,000 this year, compared with 1.05 million in 2006, and to fall further to 848,000 in 2007. This latest forecast represents some changing expectations compared to previous forecasts. The association's previous annual forecast, released in July, anticipated 6.11 million existing-home sales and 865,000 new-home sales in 2007, for example, while calling for a 2.6 percent drop ...