NAR: Home Price Rises to Slow

Median home price appreciation will slow this year but remain above the historic norm, registering at about 6.3% for existing homes and 5.6% for new homes, according to the National Association of Realtors.In the association's April real estate outlook, NAR chief economist David Lereah forecasts resales of 6.62 million on the year, down 2.4% from last year's record 6.78 million, and new-home sales of 1.14 million, down 5.0% from last year's record 1.20 million. In both cases, the totals would be the second-highest on record. "The simple fact is, we still have more buyers than sellers in most of the country," Mr. Lereah said. "This supply-demand imbalance is continuing to put pressure on home prices, but we should get closer to equilibrium by the end of the year." The NAR economist said the 30-year fixed mortgage rate should rise gradually, reaching 6.8% in the fourth quarter. The NAR can be found on the Internet at http://realtor.org.