Spring has Sprung, But Home Buyers Never Showed Up : The Real Estate Bloggers

Spring has Sprung, But Home Buyers Never Showed Up

June 7th, 2007 • Related • Filed Under

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It looks like the real estate doldrums are continuing as new home sales are now forecast to drop to 860,000, a decline of over 18 percent. The combination of tighter lending and a tepid public are creating the tepid environment that we are in the middle of. New home construction is slowing down which will reduce the inventory on the market, but absorption is not meeting the inventory and so people do not want to buy in to a community and lose value.

Sales of new homes are forecast to drop 18.2 percent to 860,000 compared with an earlier estimate of a 14.2 percent decline, the National Association of Realtors said.
The NAR also predicts the median price of existing homes, which make up about 85 percent of the market, will fall this year for the first time since the 1960s, when the group began keeping records.
The median price for existing homes is expected to drop 1.3 percent to $219,000 this year, lower than the group’s April forecast of a 0.7 decline.
The predicted decline comes after a 1 percent gain in home prices last year and an increase of more than 12 percent in 2005.  baltimoresun.com.

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