Existing U.S. home sales said to improve

UPI REPORTS:

Existing U.S. home sales will rise over the next two years, while new-home sales and construction will remain subdued, a realty association said Wednesday.

Existing-home sales will reach 6.44 million in 2007 and 6.64 million in 2008, the National Association of Realtors said.

In 2006, existing-home sales hit 6.48 million, the third-highest total, the association said.

New-home sales, after reaching 1.06 million in 2006, will weaken to 961,000 this year and rise to 971,000 in 2008.

Housing starts are likely to reach 1.52 million in 2007, down from 1.8 million in 2006, and then climb to 1.56 million next year, the association said.

The association forecast 2007's national median existing-home price would grow 1.9 percent to $226,200, after rising 1.1 percent in 2006. The median new-home price is expected to increase 1.8 percent to $249,800 following a similar 2006 gain, it said.