Another NAR prediction today—will this one flop like all its predecessors?
Keep your fingers crossed. The National Association of Realtors said today that it expects home prices to recover in 2008, with existing-home sales perking up late this year.
A good buyer’s market will aid the turnaround, said NAR senior economist Lawrence Yun. The median existing-home price is expected to decline 1.4% this year to $218,800 and bounce back 1.8% in 2008 to $222,700. Existing-home sales are expected to fall to 6.11 million in 2007 from 6.48 million in 2006, but they should hit 6.37 million by the end of 2008, the association said.
With mortgage rates and unemployment still low, this summer could also be a good time for first-time buyers to “test the housing waters,” Yun said. Hint, hint.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.