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