Industry News

NAR expects drop in home sales, prices

Median existing-home price expected to fall 1.4% this year

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Existing-home sales are expected to drop 5.7 percent this year, with the median existing-home price falling 1.4 percent to $218,800, the National Association of Realtors reported today in its latest forecast. And new single-family sales are expected to drop 17.7 percent this year after an 18.1 percent drop in 2006, with the median price of new homes dropping 2.6 percent this year to $240,100. The forecast anticipates six consecutive quarters of year-over-year existing-home median-price declines to end in the first quarter of 2008, with median existing-home prices growing 1.8 percent for the full year in 2008 compared to 2007. New-home prices are expected to rise 2.2 percent in 2008. The numbers represent a slight adjustment from the association's last forecast in June, which projected a 4.6 percent decline in existing-home sales and an 18.2 percent decline in new single-family home sales this year compared to last year, and for existing-home prices to fall 1.3 percent and n...