Note that these are estimates, and the RE industry always has rosy predictions.
This is going to be worse than they are stating, and then you need to add about 5% onto that for the incentives that are being used to move houses now.
This is going to be worse than they are stating, and then you need to add about 5% onto that for the incentives that are being used to move houses now.
Home price drop to be worse than expected, say Realtors - Jun. 6, 2007
Expected drop in home prices nearly double estimate of two months ago; recovery more than year away.
By Chris Isidore, CNNMoney.com senior writer
June 6 2007: 1:01 PM EDT
NEW YORK (CNNMoney.com) -- The outlook for home prices this year - already expected to post the first drop on record - got worse Wednesday as an industry group cut its forecasts for sales and prices for 2007.
The National Association of Realtors said it now sees the median price of existing homes sold falling 1.3 percent this year. That's almost twice the 0.7 percent drop forecast just two months ago, and is worse than the 1.0 percent drop in prices it estimated in May.
As recently as March, the group was forecasting a 1.2 percent rise in the median existing home price for this year.
Home prices: Where the growth is - and isn't
New home prices are now expected to sink 2.3 percent, according to the group's report, much worse than its previous forecast of essentially flat prices for the year.
If home prices fall as is now expected, it will be the first time that's occurred in the nearly 40 years the group has tracked home sales.
The Realtors also now expect there to be 6.18 million existing homes sold this year, down 1.7 percent from its estimate a month ago, and down 4.6 percent from 2006.
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