NAR Projecting Dip in Resale Prices

National Association of Realtors economists are projecting that tighter subprime underwriting will dampen home sales and that existing-home prices will decline nationally by 0.7% this year.The updated forecast indicates that the median resale prices will slip to $220,300 in 2007, following a 1% rise last year. Back in December, NAR economists said they expected resale prices to increase by 1.4%. "As home sales moderate, overall home prices will be essentially flat this year," NAR chief economist David Lereah said. The NAR still projects that 2007 will be the fourth-highest year in terms of existing-home sales, which are forecast to total 6.34 million, down 2.2% from last year's level. The NAR can be found online at http://www.realtor.org.