Realtors forecast first-ever annual decline in U.S. home prices. —MarketWatch Alert

Rex Nutting reports—

In its monthly housing outlook, the real estate industry group said tighter lending standards will cut into home sales even further than it had been projecting, driving prices lower.

Median sales prices of existing homes are now projected to fall 0.7% in 2007 before a modest 1.6% gain in 2008, the realtors said....

After adjusting for inflation, real home prices will probably decline for three straight years from 2006 through 2008....

Other housing economists have been predicting falling prices as well.

More bad news for what's left of the middle class, since their homes are their primary assets. Great economy, huh?

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Tags: * housing market real estate National Association of Realtors MarketWatch projection home sales projected home sales