CORRECTION Realtors expect US home prices to recover in 2008 |
|
|
|
Published
:
Wed, 11 Jul 2007 18:26
|
(corrects NAR expected 2008 median new home price)WASHINGTON (Thomson Financial) - US home prices should recover in 2008 after existing home sales improve later this year and new home sales increase early next year, the National Association of Realtors said today.The realtor group said existing home prices should rise 1.8 pct to a median of 222,700 usd in 2008, after falling an estimated 1.4 pct this year to 218,800 usd. The group said prices for new homes should increase 2.2 pct in 2008 to a median of 245,700 usd, after falling 2.6 pct this year.NAR senior economist Lawrence Yun predicted that homebuilders would limit construction of new homes 'well into 2008', which should help reduce the inventory of available homes and allow prices to rise. 'Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,' he said.The group said existing home sales are expected to fall to 6.11 mln in 2007, down from 6.48 mln last year. However, it said existing home sales should rise in 2008 to 6.37 mln.Similarly, new home sales should fall to 865,000 this year, down from 1.05 mln last year, but then rise in 2008 to 878,000.Housing starts should hit 1.43 mln units in 2007 and 1.44 mln units in 2008, the group said.The group said it estimated GDP would be at about 2.0 pct in 2007 and 2.8 pct in 2008, and that the unemployment rate should average 4.6 pct this year.pete.kasperowicz@thomson.compik/wash/dcaCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
|
|
|
|
Print this Story
Realtors expect US home prices to recover in 2008 