Posted at 9:28 a.m., Friday, July 13, 2007
Trade group sees slight recovery in 2008 home prices
Advertiser Staff
Home prices nationally are expected to recover slightly in 2008 as housing inventory falls from current levels, according to the latest forecast by the National Association of Realtors.Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800.
Existing-home sales will begin picking up late this year, rising to a total of 6.11 million for 2007 and 6.37 million in 2008, according to the forecast. Those numbers are both lower than last year's 6.48 million.
Meanwhile, new-home sales are projected to reach 865,000 in 2007 and rise to 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.8 million last year.
The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.
"Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," says Lawrence Yun, NAR senior economist. "But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state."
