Realtors Lower Housing Forecasts for 2007, 2008

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By Rex Nutting

RISMEDIA, June 7, 2007-(MarketWatch)-Once again, the National Association of Realtors? has lowered its forecasts for key housing indicators for this year and next. Sales of existing homes are now expected to fall 4.6% to a seasonally adjusted annual rate of 6.18 million.

A month ago, the real estate trade group was expecting sales to fall 2.9%. Sales of new homes are expected to fall 18.2% to 860,000 and housing starts are expected to fall 20.4% to 1.43 million.

For 2008, sales of existing homes are expected to rise 3.7%, sales of new homes should rise 4.8% and starts should rise 3.6%. NAR senior economist Lawrence Yun said sales would “gradually trend upward with improving activity by the end of the year.”

The Realtors update their forecast each month.

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