NAR Sees Housing Price Dip

The National Association of Realtors is projecting that housing prices will dip below last year's levels for a few months due to slower-than-expected sales and rising inventories."This year, sales are slowing, homes are plentiful, and sellers are negotiating," NAR chief economist David Lereah said. "Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build-up in housing inventory." The NAR's revised forecast calls for the national median existing-home price to increase 2.8% this year, compared with 12.7% in 2005. In June, the NAR forecast that home prices would increase by 5.3% this year. The June forecast also called for existing-home sales to total 6.60 million in 2006, down 6.8% from last year's total. Now, the NAR says it expects sales of single-family homes, condominiums, and cooperatives to drop by 7.6%, to 5.54 million.