NAR Sees Modest Turnaround in 2008

The National Association of Realtors says existing home sales are likely to total 5.67 million units this year, the fifth highest on record, rising 0.5% to 5.70 million in 2008. The 2008 figure will still be down 12.0% from 6.48 million in 2006. Existing-home prices should be down 1.9% to a median of $217,600 for all of 2007, and then rise 0.3% to $218,300 in 2008.
NAR says the 30-year fixed-rate mortgage will rise slowly to the 6.4% range by the end of 2008. Gross domestic product (GDP) growth should be 2.1% in 2007, down from a 2.9% growth rate last year; GDP growth is forecast to improve to 2.4% in 2008.
The unemployment rate is likely to average 4.6% for 2007, unchanged from last year, but rise to 5.0% in 2008. Inflation-adjusted disposable personal income is estimated to grow 3.1% this year, the same as in 2006, and then grow 2.2% next year.