Industry News

NAR: Existing-home sales to fall 10.8% in 2007

Hefty declines expected for single-family housing starts

The National Association of Realtors expects sales of previously owned homes to fall 10.8 percent this year compared to last year, and for prices to fall 1.3 percent, according to the group's latest annual forecast. The Realtor group's forecast, prepared by Lawrence Yun, its senior economist, also anticipates a 27.1 percent drop in housing starts for single-family units, a 24 percent overall drop in housing starts, a 23.5 percent decline in new single-family home sales, and a 2.1 percent drop in new-home prices this year compared to 2006. Yun's forecast calls for sales of 5.78 million previously owned homes this year, compared with 6.78 million sales in 2006. Existing-home sales are expected to grow 5.8 percent, to 6.12 million, in 2008 compared to 2007. In its previous annual forecast, the Realtor group predicted that existing-home sales would drop 8.6 percent this year compared to 2006 and then rise to 6.27 million in 2008. That report also predicted a 1.7 percent drop this year in t...