Housing Market Expected to Hold Steady in 2002

The nation’s housing market is expected to soften slightly this year, but still post strong sales activity as the economy rebounds from a shallow recession, according to the National Assn. of Realtors’ latest economic and housing forecast.

Dr. David Lereah, the association’s chief economist, said the forecast anticipates a “negligible” 0.5% decline in national existing-home sales to 5.23 million units this year compared with 2001’s results.

But new-home sales are expected to decline 3.2% to 874,000 units and housing starts are expected to decline 4% to 1.54 million from 2001 levels in 2002.

The final figures for 2001’s housing markets have yet to be tabulated, but the association’s evidence thus far indicates sales of existing and new homes set records last year.