The National Association of Realtors has forecast a drop of 8.6 percent in total sales of existing homes across the nation.
According to the latest report from the trade group that represents realtors around the country, a total of 5.9 million existing homes will sell during all of 2007. This is down from a total of 6.5 million homes sold during 2006.
Prices for existing homes are also expected to drop by 1.7 percent, according to the National Association of Realtors.
Problems with the credit industry has lowered demand for homes around the country. Banks and other lenders are tightening requirements for buyers to qualify for loans. The move comes after a marked increase in foreclosures across the nation.
The subprime credit market has been particularly hard hit by foreclosures as underqualified buyers have faced difficulty managing rising interest rates.
Home sales in Chicago are down for the second quarter, according to the Chicago Association of Realtors.
Chicago saw a 25 percent decline in sales of Chicago Homes, from 2944 during the second quarter of 2006 to 2247 during the same period this year.
Technorati Tags: Chicago Home Sales, Chicago Real Estate Market
