National Association of Realtors Real Estate Update

The slowing of house sales and home prices will last longer and be deeper than previously expected, according to the National Association of Realtors in their latest forecast on Wednesday. The NAR is now looking out for flat prices in existing homes during the first quarter of 2008, as occurred during the first quarter of 2007-a new home year-over-year decline. The National Association of Realtors previously forecasted that both existing homes and new homes prices’ would start to recover to show a year-over-year rise during the first quarter of 2008. However the NAR believes that existing and new home prices will show less than a 1% rise in the 2^nd quarter of 2008, according to their most recent forecast, much less than previous forecasts. This could possibly least to a rising number of foreclosures, as homeowners who need to get out from under their mortgage are unable to sell their homes. Foreclosures rates have been rising since the beginning of the year, and will probably not stop until the real estate market recovers.