National sales of resale homes are expected to rise 2 percent this year compared to 2008, with the national resale median price falling 12.9 percent, the National Association of Realtors reported Friday in its latest annual forecast.

The projected sales rise would be the first in two years, after a 12.8 percent drop in 2007 and a 13.1 percent drop in 2008, and NAR is projecting an additional 13.6 percent rise in existing-home sales in 2010.

The U.S. median resale price fell 9.5 percent last year and dropped 1.4 percent in 2007 — NAR is forecasting a 3.6 percent rise in the median resale price in 2010.

NAR Chief Economist Lawrence Yun said in a statement that the federal first-time homebuyer tax credit program "is working better than first projected," with a projected 2.3 million to 2.4 million first-time homebuyers this year and 5.01 million total sales of resale homes.

The group anticipates that new-home prices will fall 9 percent this year, with new single-family home sales dropping 18.1 percent this year and rising 38.2 percent in 2010. New single-family home sales had plunged 33.3 percent last year and 24.8 percent in 2007.

The trade group forecasts that real gross domestic product will fall 2.5 percent this year and rise 2.8 percent next year.

Unemployment will average 9.3 percent for the year and rise to 9.8 percent in 2010, according to the forecast — in 2007 the unemployment rate was 4.6 percent.


What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
What ‘basic’ skills should you refresh? Find out!Watch Now×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription