2007 Real Estate Market Predictions from NAR
March 16, 2007 · Filed Under Mortgage Financing, Real Estate News
Unusual weather patterns and problems in the subprime lending marketplace are creating challenges in assessing housing market conditions, but a recovery is likely this year, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.
The National Association of REALTORS (NAR) today released revised housing projections for the 2007 real estate market. Below are a few highlights. You can view the entire report here.
- Existing median home prices are expected to rise 1.2 percent this year. “Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next. However, total sales this year will be fairly close to 2006 because last year started high and ended low.”
- NAR predicts the problems with the sub-prime mortgage-lending marketplace will dampen the market but not spill over into prime market lending. (Sub-prime is for borrowers who have less than perfect credit.)
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I don’t think sub prime loans is the core factor to market fluctuation. Market cycles or various MSA’s have a number of factors, which may not always be pin-pointed, but are certainly found in the math when using technical analysis from government released numbers.
Marty – love the new site, don’t know when you put it up but it looks GREAT! And it’ll be interesting to see how sub-prime lending is handled – I read today that the Top 5 sub-prime lenders have been subpoenaed, and I certainly believe it’s going to lead to tighter reforms. All the best!