| A market price of any product is | | | | 0.3% from the last year. This was |
| determined by several factors. In real | | | | accompanied by the backlog clearance of |
| estate industry, the price of a house is | | | | unsold homes by 4.2% from previous |
| always vulnerable to faltering financial | | | | months. Though the industry faced a |
| conditions of the market. The housing | | | | slower sales rate, yet the inventory |
| sale is the most influencing factor in | | | | stayed on at 8.8 monthly supplies. |
| determining its price. In recent times, | | | | The threat of rising foreclosure, the |
| the wavering housing sale is being | | | | bad market for the subprime borrowers, |
| expected to leave a deep trace in | | | | the declining rate of home sales and |
| housing price. | | | | mixed information to the buyers became |
| The recently published House Price Index | | | | the reasons for the more decline in |
| report of Office of Federal Housing | | | | housing sales. In June 2007, there was a |
| Enterprise Oversight (OFHEO), declares | | | | falling of housing inventory. It was |
| that there is price appreciation of 0.5% | | | | supported by a noticeable rise of |
| higher than the fourth quarter of the | | | | housing prices. This became the first |
| last year. This is recorded to be the | | | | instance in the last 11 months when the |
| lowest rate since 1998. The price | | | | median home price grew higher than the |
| appreciation comparison of this first | | | | previous year's. |
| quarter report of 2007 with the previous | | | | The single-family home sales were fallen |
| two-quarters' reports of 2006 shows poor | | | | in June by 3.5% from May. This was also |
| record by 1.3%. Though at the beginning | | | | 12.1% lower than the 5.70 million-units |
| of 2007, the price was higher than the | | | | level in the same time of the last year. |
| previous year by 4.3%, yet this comes | | | | On the other hand, the median of |
| out to be the lowest yearly comparison | | | | existing single-family home price was up |
| record since third quarter of 1997. | | | | 0.1% from 2006. Likewise, while the |
| This appreciation record of HPI, when | | | | existing condominium and co-op sales |
| fed up with the information on home | | | | were declined by 6.3%, the median sales |
| purchase and refinance, was turned out | | | | price was up 2.6% from the previous |
| to be only 3% on quarter comparison | | | | year. |
| between 2006 and 2007. The overall | | | | According to the National Association of |
| housing prices have arisen at the | | | | Realtors, the housing price will be |
| beginning of 2007, but it was the lowest | | | | increased in the next year. This will be |
| rate in 10 years. The growth rate of the | | | | as a result of and accompanied by the |
| housing prices in the last year was | | | | rising of the real estate sales to |
| faster than other non-housing materials | | | | almost 6.4 million in the next year. |
| and services by almost 3 points. | | | | This year, it is estimated to be 6.1 |
| The existing home sales were down 2.6% | | | | million. While in the previous year, it |
| in April, where new home sales jumped up | | | | was 6.5 million. Existing home prices |
| several points. Prices rose slowly after | | | | are supposed to rise by 1.8% after this |
| May-June and inventories on the other | | | | year's 1.4% fall. Also the new-home |
| hand decreased slightly. The national | | | | prices are presumed to gain 2.2% after |
| median existing home price was up by | | | | this year's 2.6% fall. |