In a fresh sign that the nation's housing crisis will worsen, home prices are likely to decline in 2008 for the second straight year, the National Association of Realtors said Thursday.The average American family is seeing steep declines in both their 401(k) balances and their home values. For most families these are their greatest assets.
The Realtors, in its monthly economic and sales outlook, is forecasting a 1.2% drop in prices of existing homes sold this year.
Only a month ago, the association was forecasting that prices would be flat in 2008 and that the home market would rebound in the last half of the year.
The group was forecasting that the first quarter would see a record 5.3% drop from year ago levels. Now it's expecting the current quarter to see even a larger decline in prices of 6.1%.
Last year, when the median price slipped 1.4 from 2006 levels, was the first on record that the Realtors recorded full-year decline in existing home prices.
Our economy has been left in a shambles by an administration that doesn't understand the plight of the middle and lower classes. When will Americans finally realize that Republican economic policies are destroying our country and have taken us from the largest creditor nation on earth to the largest debtor nation on earth. Who has benefitted from these awful policies? Those at the upper echelons of society. Is this really what we want for our nation?