December 22, 2006

Home Sales May Keep Falling in 2007

Home Sales May Keep Falling in 2007

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The National Association of Realtors predicted that next year will likely bring a second annual decline in existing home sales.

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Sales of existing homes are expected to decline 8.6 percent to 6.47 million for 2006 and contract another 1 percent to 6.40 million units next year.

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Still, the housing sector should see a rebound by the end of next year, said David Lereah, the association's chief economist.

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"By the fourth quarter of 2007, existing-home sales will be 4.6 percent higher than the current quarter," Lereah said.

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Sales of new homes should fall a sharp 17.7 percent this year and another 9.4 percent next year, the NAR projected.

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