Industry News

Realtors lower 2007 housing expectations

Latest forecast projects 19% drop in housing starts

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 has lowered its expectations for the housing market -- the group's latest 2007 forecast anticipates a 17.8 percent drop in new-home sales, a 19 percent drop in housing starts and a 2.9 percent drop in existing-home sales compared to 2006. "Housing activity this year will be somewhat lower than in earlier forecasts, with clearer analysis of the effects of stricter lending standards and a decline in subprime mortgage origination," the association reported. Also, the latest forecast calls for the median national existing-home price to fall about 1 percent and for the median new-home price to drop about 0.04 percent this year compared to last year. In an earlier forecast in January, the association projected a 1.5 percent rise this year in the national median existing-home price and a 3 percent gain in the new-home price. The association's latest 2007 forecast projects 6.29 million existing-home sales this year compared with 6.48 million existing-home s...