The 2007 median price for an existing home probably will decline 0.7 percent, to $220,300, the first drop since the real estate trade group began keeping records in 1968 and probably the first decline since the Great Depression, said Lawrence Yun, an economist with the association, which is based in Chicago. The median price for new homes is projected to increase 0.4 percent, to $246,200 this year, the smallest gain since prices fell in 1991.
The problems in the subprime loan market will make it more difficult for borrowers to get mortgages and will cause home prices to fall this year for the first time on record, the National Association of Realtors said yesterday.
"We've been getting reports from Realtors out in the field about home closings not going through at the last minute because of loan problems," Mr. Yun said in an interview. "That impacts all homeowners because it affects prices."
New-home sales will probably decline 16 percent this year, to 904,000, while sales of existing homes are likely to fall 2 percent, to 6.34 million, from 6.48 million last year, the association said.
Mortgage rates probably will not increase, according to the report. The 2007 average rate for a 30-year fixed mortgage will match the 6.4 percent in 2006, and the average for a 30-year annually adjusting mortgage probably will stay at last year's 5.5 percent, the forecast said.
Edited by Rogerdodger, 11 April 2007 - 10:57 PM.
Biggest difference between wealth of rich and poor since 1928.
c) Total US debt to GDP ratio highest since 1932.
d) LT interest rates lowest since 1930s.
Do we see a pattern here? Greenie says si.
