NAR Forecast

The spring selling season is not boosting existing homes sales and the National Association of Realtors expects sales to decline 6.1% in the second quarter, compared to the previous quarter.The Realtors' latest forecast shows existing home sales are estimated to fall from a seasonally adjusted annual rate of 6.42 million in the first quarter to a 6.03 million rate in second quarter, which is 9% below the rate in the second quarter of 2006. NAR senior economist Lawrence Yun said the market is "relatively soft" and sales remain sluggish compared to the recent boom. "Home sales will probably fluctuate in a narrow range in the short run, but gradually trend upward with improving activity by the end of the year," he said. NAR is forecasting that sales of previously owned homes will rise to a 6.2 million rate in the fourth quarter. For the year, sales will total 6.18 million, down 4.6% from 2006. At the same time, the median price of an existing home is expected to decline by 1.3% in 2007.