Industry News

Easy credit, price cuts will keep homes selling in 2007

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Most housing markets experiencing slowdowns aren't facing fundamental economic problems like job losses and out migration and will see prices correct, rather than collapse, in 2007. That was the outlook of housing experts who participated in a conference call discussion Monday, "Housing Forecast 2007: Inside the Crystal Ball," moderated by Inman News publisher Bradley Inman. Barring an unforeseen jolt to consumer confidence or a sudden rise in interest rates, panelists predicted that nationwide, the volume of home sales in 2007 will be similar to or slightly below 2006 levels. But in order for that to happen, prices will have to come down in areas that saw rapid appreciation during the boom years. A "good solid price correction will bring buyers back into the market," David Lereah, chief economist for the National Association of Realtors, said. The economy, although not "robust," continues to grow, he said, and a combination of wage gains and price drops will "make affordability b...