NAR Sees 11% Drop in '07 Resales

Sales of existing single-family homes are expected to drop by nearly 11% this year, according to a newly revised forecast by the National Association of Realtors.One month ago, NAR economists projected that problems in the housing and mortgage markets would crimp sales of previously owned homes by 8.6%. Now the Realtors see sales falling to 5.78 million this year, down from 6.48 million in 2006. However, the NAR says it expects house prices to slip by only 1.3% this year. An earlier forecast showed a 1.7% decline. NAR senior economist Lawrence Yun noted that the pricing on jumbo mortgages has improved over the past month and that Federal Housing Administrations loans are "helping to fill the subprime vacuum." The NAR can be found online at http://www.realtor.org.