Realtors Group Lowers Sales Forecast

WASHINGTON, D.C. (AP) — The decline in sales of existing homes this year will be steeper than previously anticipated, a trade group for real estate agents said October 10.

The eighth straight downwardly revised forecast from the National Association of Realtors calls for US existing home sales to be 10.8 percent lower than last year as housing market struggles persist.

In its October report, the association predicts 5.78 million existing homes will be sold in 2007, down from 6.48 million last year. Last month, the association predicted an 8.6 percent drop from a year ago.

This year’s sales would be the lowest since 2002, when sales hit 5.63 million. Sale prices for existing homes are forecast to drop 1.3 percent to a median of $210,200 this year.

Next year, the trade group expects existing home sales to climb to 6.12 million, down 2.4 percent from last month’s prediction for 2008 sales.

New home sales are projected to fall to 805,000 this year, down 23 percent from 1.05 million last year. Next year they are projected to fall to 752,000.

The trade group’s projection for 2007 homes sales has grown more pessimistic through the year as the housing market’s troubles became more evident. Back in February, it was projecting only a decline in sales of only 0.6 percent from last year.

Still, the group maintains an optimistic message. Its senior economist, Lawrence Yun, noted in a statement that markets including Austin, Texas, Salt Lake City, and Raleigh, N.C., are showing price growth and 2007’s home sales will be the fifth-highest on record.