Final reports from 2007 as reported in Realtor Magazine by David Lereah from economic data povided by the National Association of Realtors.
"The sky never fell in 2006. There were no bursting bubbles. But air came out of some over-inflated balloons -those markets that experienced frothy appreciation. Final 2006 figures show existing home sales down 8.4 percent for the year, new-home sales down 17.3 percent and housing starts down 12.9 percent.
This year will be better. Home sales appear to have bottomed out, reaching a cyclical low in September 2006. Since then, home sales have been inching up, albeit modestly. Inventories have stabilized, with the national months' supply hovering around 7.3 months since July 2006."
The NAR forecast calls for modest quarterly gains. However new-home sales are not expected to rebound until 3rd quarter. The five year feeding frenzy has been neutralized and 2007 should leave residential real estate quite stable and positioned to once again take its place as a major economic driver for 2008.
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