First Drop Expected for Home Prices This Year

The national median price for existing homes is expected to drop this year for the first time since the National Association of Realtors began keeping records in the late 1960s.

The NAR is forecasting a 0.7% dip in 2007 for the national median price for existing homes after a 1% gain last year.

NAR spokesman Walter Molony said "most areas should see modest gains, but some will see price declines. On balance, he said, prices should be flat.

The national median new-home sale price is projected to rise 0.4% after a 1.8% gain last year, according to the association.

According to Molony, new-home prices did decline 2.4% in 1991.

What is your opinion about the condition of the real estate market in U.S. now? Share your opinion with us.

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