Home Prices Expected to Fall
Diana Heeb Bivona
The usually optimistic National Association of Realtors (NAR) has finally conceded that the median price of existing U.S. homes will fall in 2007. They’re projecting a 0.7% drop. This marks the first time that has happened since records started in the late 1960s. However, the news for new homes is slightly better. The national median sale price for new homes is expected to rise a modest .4%.
The NAR is also lowering their 2007 forecast for sales of new and existing homes citing tighter lending standards and the continued fallout from the subprime mortgage meltdown.
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