Underlying Strength

So, Where will the Home-Sale Market be in 2008?

The National Association of Realtors'^® economists are forecasting existing-home sales to make a comeback and rise to 6.1 million or 6.2 million units, up from about 6 million in 2006, and prices will also rise about 2 percent.  Some local markets like Austin and Denver will do far better.  On prices, the housing market will be helped by a significant drop in new-home starts.  Media reports tend to portray that as a negative - further evidence of troubles.  But it's actually very good for real estate, because it keeps inventories down and price pressure up - and that's what consumers really care about.  The important economic trend lines for consumers are pointing in the right direction.

-NAR Realtor^® Magazine, November 2007