Housing Market Improving

 

According to the National Association of Realtors, prospects for existing home sales may improve in the coming year, relative to this year's sluggish pace, while new home sales are expected to continue their slide into 2007.

 

Nonetheless, NAR said home prices will continue to appreciate this year, even as market activity slows dramatically. The national median existing-home price for all of 2006 is projected to rise 1.4% to $222,600, with another 1.0% gain next year to $224,700, according to NAR. The median new-home price should fall by 0.5% to $239,700 this year, followed by a slight 0.8% increase in 2007 to $241,700.

 

Based on NAR forecasts, existing-home sales are expected to be 6.47 million for all of 2006, which would be a decline of 8.6% from 2005. In 2007, the pace of sales is expected to rise steadily from the current low and reach an annual total of 6.40 million, which would be 1.0% lower than this year's total.

 

"By the fourth quarter of 2007, existing-home sales will be 4.6% higher than the current quarter," said David Lereah, NAR's chief economist, in a statement accompanying the forecast.

 

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