Industry News

NAR: Existing-home sales to flatten in ’07

Modest price growth expected

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Following a correction in home sales and prices in 2006, existing-home sales are expected to "coast" at roughly the same level next year, although there will be some additional decline in the new-home market, according to a forecast released today at the National Association of Realtors Conference & Expo in New Orleans. "Overall home-price gains will be modest," said David Lereah, NAR's chief economist, in a statement, and sellers are adjusting to the market transition. "Home sellers are becoming realistic about current market conditions and are now offering more competitive pricing, in addition to some incentives or concessions -- especially to help first-time buyers," he said. "We now have the most favorable market for home buyers in several years, and most sellers -- who've been in their home for a normal period of home ownership -- are still seeing very healthy returns on their investment. Conditions for buyers have improved because sellers are flexible now and mortgage in...