The National Association of Realtors revised forecast calls for 1.3% drop in median existing-home prices, following a downward adjustment last month.

SALES: Existing-home sales are expected to fall 4.6 percent this year to 6.18 million, compared with 6.48 million in 2006, with new single-family home sales dropping 18.2 percent and housing starts dropping 20.4 percent. Housing starts for single-family units are expected to decline 23 percent this year compared to 2006.

PRICES: Median existing-home prices are expected to drop 1.3 percent this year to $219,100, while new-home prices are expected to fall 2.3 percent to $240,800, according to the association’s latest forecast. The forecast calls for home prices to recover in 2008, with the existing-home price rising 1.7 percent and the new-home price rising 2.6 percent compared to 2007.

2008 FORECAST

Existing-home sales are expected to rise to 6.41 million in 2008, while new single-family sales are expected to rise from 860,000 this year to 901,000 in 2008 and total housing starts are expected to rise from 1.43 million this year to 1.49 million in 2008, the Realtor group reported.

Source: Inman News