Real estate trade group forecasts lower home sales

AlfredSokol said: "Borrowers are having a harder time and that will slow home sales [url=http://www.mercurynews.com/realestatenews/ci_6574838?nclick_check=1]according to a trade group[/url] [quote] The National Association of Realtors' revised forecast calls for existing home sales of 6.04 million in 2007, down 6.8 percent from last year. The forecast was 1 percent lower, or 70,000 fewer homes, than July's prediction of 6.11 million. This year's sales would be the lowest since 2002, when sales hit 5.63 million. Last year's sales were 6.48 million. Next year, the trade group expects sales to climb to 6.38 million, up slightly from the forecast it gave in July of 6.37 million. The forecast comes as delinquencies among borrowers with weak, or subprime, credit have risen dramatically over the past year, and other loans are showing weakness as well.[/quote] The main concern is that lenders cant make risky loans to borrowers, and this will continue to have a depressive effect on sales."

ratAphooey said: "1% decline doesnt sound that bad."