Nation

NAR SCORES ON BANKING ISSUE IN SENATE APPROPRIATIONS

The United States Senate Committee on Appropriations adopted an amendment to the FY2008 Financial Services and General Government Appropriations Bill on July 12, 2007 that permanently prohibits national bank conglomerates from engaging in real estate brokerage and property management. Long-time REALTOR champions in the U.S. Senate, including Senators Hillary Clinton (D-NY), Richard Durbin (D-IL), Wayne Allard (R-CO) and Richard Shelby (R-AL) were instrumental in passing the amendment,. New champions on the Banking Issue, particularly Majority Leader Harry Reid (D-NV) and Senator Chris Dodd (D-CT), were very involved in passing this amendment. Earlier this summer, the House of Representatives passed their version of the legislation containing a one-year moratorium. The two bills will go to conference in September to develop the final bill.

NAR FORCASTS HOME PRICE RECOVERY IN 2008

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, NAR forecasts. "Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," says NAR Senior Economist Lawrence Yun. "But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state." Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year. Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800.