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NAR forecast: Resale home prices will fall 1.4% this year

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The median price of resale homes is expected to drop another 1.4 percent this year, equaling last year's decline, and an index tracking pending sales of resale homes hit a record low in February, the National Association of Realtors reported today. The median price of new homes is expected to drop 3.6 percent this year. Sales of resale single-family homes and condos and co-operatives are expected to drop 4.7 percent this year, to an annual total of 5.39 million sales, according to the Realtor group's latest housing market forecast. That follows a 12.8 percent decline in 2007 and an 8.5 percent decline in 2006. New-home sales are expected to drop 25.7 percent this year, following a 26.3 percent decline last year and an 18.1 percent decline in 2006. Single-family housing starts are expected to tumble 34.2 percent this year compared to 2007, topping a 28.6 percent decline last year and a 14.6 percent decline in 2006. NAR is predicting that a turnaround in the housing market wil...