Wednesday, April 11, 2007

Home prices to fall for first time in 2007

CNN Money "The National Association of Realtors said Wednesday it expects its measure of home prices to fall this year for the first time since the group began tracking sales nearly 40 years ago.

In its latest monthly forecast, the group said it expects a 0.7 percent decline in the median price of an existing home sold this year. A month ago it had been projecting a 1.2 percent increase. Median is the point at which half the homes sell for more and half sell for less.
The Realtors noted the problems in the subprime mortgage market had led it to cut its sales forecast. It said problems of some potential buyers getting financing has cut its expectation of existing home sales this year by 100,000 homes to 6.34 million."
That's a pretty serious restatement by David Lereah's cheerleading section.
In fact, in light of the probability that this is still spin, it is a little worrying. The reality is probably much worse.
Vern

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