National outlook is grim

The National Association of Realtors is projecting that median prices for previously occupied homes will fall 0.7 percent this year from 2006 levels. The group has frequently said that home prices haven’t fallen nationwide since the Great Depression. The Realtors’ forecast reverses on their February assessment that prices would increase 1.9 percent over 2007. The group’s chief economist said they believed prices would slip this year both because the collapse of the subprime lending industry has led lenders to tighten their standards, and because mounting foreclosure rates are flooding many markets with inventory. more [WSJ]