A trade group for real estate agents on Wednesday lowered its outlook for existing home sales this year by 1 percent, or 70,000 homes, as the housing market continues to slump.

The National Association of Realtors’ revised forecast calls for existing home sales of 6.04 million in 2007, down from July’s prediction of 6.11 million this year.

The trade group expects sales to climb to 6.38 million next year, up slightly from July’s forecast of 6.37 million.

Sales in both years are projected to be below last year’s level of 6.48 million.

“With the population growing, the demand for homes isn’t going away it’s just being delayed,” Lawrence Yun, NAR’s senior economist, said in a statement. “More buyers, and cutbacks in new construction, will eventually draw down the inventory levels and support future price appreciation, but general gains will be modest next year. Serious buyers today have a long-term view of housing as an investment — speculators have left the market.”

As for new homes, sales are projected at 852,000 in 2007 and 848,000 next year, down from the nearly 1.1 million new homes sold in 2006.

More than 1.4 million housing starts, including multifamily units, are forecast this year and in 2008, but that is down from 1.8 million last year.

Median nationwide existing-home prices are expected to fall by 1.2 percent to a median of $219,300 this year, before climbing back next year to $223,600.

Sarasota-Bradenton’s housing market showed some renewed vigor in June with sales rising 5 percent when compared with the same month in 2006.

Prices were more dicey with the median dropping 10 percent, though the June price was on par with the last six months. Sarasota-Bradenton’s median sales price was $292,700 in June.

The market was one of only two in Florida that showed June sales increases.

Charlotte County-North Port saw a 33 percent drop in sales, from 323 homes in June 2006 to 218. Its median price dropped 10 percent, from $222,300 to $199,000.

Statewide, June sales dropped 30 percent while prices declined 5 percent to $243,200.

Discuss this article on the forums. (0 posts) 

Discuss this article on the forums. (0 posts) 

http://www.heraldtribune.com/article/20070808/BREAKING06/70808009