NAR changes 2008 forecast

NAR lowers sales forecast for resale homes The National Association of Realtors, in its latest housing market forecast, has lowered expectations for total sales of resale homes this year and is projecting an 8.9 percent drop in sales compared to 2007.In its previous forecast, released last month, the trade group projected that sales of resale homes would fall about 6 percent this year and rise 5 percent in 2009. The forecast released today calls for a 7 percent increase next year.NAR expects the median resale home price to fall 5.6 percent this year compared to 2007 and then rise 4.4 percent in 2009. Single-family housing starts are expected to drop 39.6 percent this year and 21.1 percent next year, following a 14.6 percent drop in 2006 and a 28.6 percent drop in 2007. Single-family new-home sales are expected to drop 34.3 percent this year and 8.8 percent next year, following an 18.1 percent drop in 2006 and a 26.3 percent drop in 2007.Resale home prices are expected to fall 5.6 perce...