Sales of New and Existing Homes Sliding

Sales of New and Existing Homes Sliding

Mortgage-finance company Fannie Mae said that sales of new and existing homes will continue their slide this year, due largely to investors pulling out of the housing market.

In an economic and housing outlook, Fannie Mae said sales of new homes are expected to drop by 7.1% in 2007, while sales of existing homes are expected to drop 8.1% this year.

Fannie Mae’s projections follow similar estimates released by the Mortgage Bankers Association. The trade group forecast declines in 2007 of 7% in existing-home sales and 8% in new-home sales.   Fannie economists said the projected sales for 2007 would be the lowest since 2002.

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If you’re in the market for a new home, tell us how you feel about the current state of new home sales.  Does it make you feel inclined to wait, or hurry, with a new home decision.  We’d love to hear your comments.