WASHINGTON - Existing-home sales will slide more than 9% this year, and sales of new homes will drop 6.5%, according to a report by the National Association of Realtors.
The association also predicted that prices for existing homes would fall 2.9%, to a median of $136,800, and new-home prices would drop 4.3%, to $166,300.
Despite the falling numbers, this year's is still one of the most active housing markets on record.
"Higher interest rates will slow both the economy and housing markets during the second half of the year," said David Lereah, senior vice president and chief economist for the association. "But there is a possibility mortgage rates could decline slightly if lenders are confident inflation is under control, and that home sales could rebound later in the year."