5.6 Million Homes Sold in 2007; Fifth Highest Total on Record

It should be considered a darn good performance in almost anyone’s book.

But of course, context is everything, so even when a year-end total is right up there among the all-time greats, if it doesn’t match or exceed the dizzying heights of recent years, then the news only seems to be glum.

Many people would probably be astounded to learn that total home sales nationwide in 2007 is the fifth highest ever recorded, according to the National Association of Realtors (NAR).

Sadly, that fact is not likely to make the evening news.

There’s absolutely no denying there are problems in the housing market currently. But there’s also no denying there are strengths alongside weaknesses, and positive news right alongside the negative.

As part of its announcement regarding 2007’s housing totals, NAR also touched upon these topics:

•	Total home sales for 2008 are expected to inch slightly higher than 2007, to 5.7 million.
•	Price increases are being seen in two-thirds of the metro areas of the U.S., despite a commonly quoted decline overall in the media and on the street. Why? “The apparent disparity results from fewer sales in high-cost markets, so a change in the mix of sales is dragging down the national median home price,” says Lawrence Yun, NAR’s chief economist.
•	Historically low mortgage interest rates are expected to continue through 2008, with 30-year fixed loans in the range of 6.4% at the end of the year.

Inflation will be down to an estimated 2.7% for 2008, as measured by the Consumer Price Index.