Recovering Home Prices In 2008?

Source: National Assoc. of Realtors (N.A.R.)

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, NAR forecasts.

"Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," says NAR Senior Economist Lawrence Yun. "But with profit margins coming under pressure, home builders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state."

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multi-family units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year. Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800.

What does all of this mean?

If now is the time you need to sell your home,

• prepare your property in the best condition possible (don't sell in 'as-is' condition)
• take a very close look at active home inventory in your price range, the recent sales in your neighborhood and price your home at market value (starting at an inflated price for some negotiating room will only cause your home to be on the market longer and sell for less, because buyers will find better-valued homes.)

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