Housing sellers expect stronger market in '08

Realtors believe both number, prices of existing-home sales are on the rise

Job growth and better mortgage conditions are among the reasons a national real estate trade group has improved its outlook for the housing market.

The National Association of Realtors on Monday projected existing-home sales to rise to 5.7 million in 2008, up from the 5.67 million expected this year.

And while existing-home prices are expected to be down 1.9 percent to a median of $217,6000 for 2007, the group expects the price to rise 0.3 percent to $218,300 in 2008.

Lawrence Yun, the association's chief economist, said that "the unusual mortgage disruptions that peaked in August were clearly seen in lower home sales that were finalized in September and October, so the market was under performing.

"Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels."

Yun said home price growth in the "vast affordable midsection of America will help the national median existing-home price growth slightly in 2008.

"I then expect price appreciation to return to more normal patterns in 2009, perhaps rising one of two percentage points above the rate of inflation."

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