Home sales and prices will fall more sharply than expected this year, due to troubles in the subprime mortgage market and stricter lending standards, the National Association of Realtors said.
The NAR predicted existing home sales of 6.29 million this year, down from 6.48 million in 2006. New home sales could fall from 1.05 million in 2006 to 864,000 in 2007 and then rise to 936,000 next year. The national median existing-home price could slip 1 percent to $219,800 this year, then inch up 1.4 percent in 2008. The median price of a new home should remain flat this year at $246,400. If prices do fall, it would be the first annual drop since the group began keeping records in 1968.
