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“The boom is cooling now”

Diana Heeb Bivona

So comes the pessimistic words of the NAR’s chief economist, David Lereah.  Up until this point, the NAR had remained relatively optimistic about the real estate market.  However, recently, David Lereah remarked that falling home sales were “a bit worse than we had anticipated.”

NAR now expects sales to fall about 7.5 percent this year compared to an earlier projection of a 5 percent decline. It also expects prices to drop nationwide  during the next few months, instead of appreciating modestly. If that happens, it would be the first time since 1993 that median home prices have fallen in any given month.

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