Industry NewsMarkets & Economy

NAR: Home prices to drop 8.3% in ’08

Real estate brief

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Sales of U.S. resale homes are projected to fall 10.9 percent this year compared to 2007, with the median price dropping 8.3 percent, according to the latest National Association of Realtors forecast. That forecast has been revised downward several times during the course of the year in response to the nation's economic downturn -- back in January, the group has predicted that sales of resale homes would rise slightly this year and that prices would hold steady compared to 2007. The sales projection has actually been revised upward since the group's previous forecast, released last month, which anticipated an 11.4 percent year-over-year drop in sales. NAR's previous forecast called for the median price of resale homes to fall 7 percent this year, which is less than the drop anticipated in the forecast released today. The anticipated drop to 5.04 million sales of resale homes this year would be the third straight year of decline -- sales dropped 12.8 percent in 2007 and 8.5...