2008 Forecast
John Tuccillo
    The National Economic and Real Estate Forecast
               History              Forecast   
Indicator 2005 2006 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2007 2008  
Real GDP (% change,saar) 3.2 3.1 2.1 0.6 3.8 3.9 0.5 1.0 1.5 2.3 2.5 2.2 1.8  
Employment (% change in          
     nonfarm payrolls) 1.5 1.3 1.5 1.5 1.2 0.9 1.00 0.90 0.90 0.90 0.50 1.15 0.80  
CPI (% change*) 3.4 3.2 -2.1 3.8 6.0 1.9 4.0 3.7 3.6 3.5 3.8 3.9 3.7  
Consumer Confidence Index 100 105 107 110 107 106 100 100 100 101 100 106 100  
           
30-Year Mortgage (%) 5.9 6.4 6.3 6.2 6.3 6.6 6.0 5.8 6.0 6.0 6.0 6.3 6.0  
1-Year ARM (%) 4.5 5.5 5.5 5.5 5.5 5.7 5.5 5.4 5.3 5.3 5.3 5.6 5.3  
           
Home Resales (000s,saar) 7,076 6,478 6,263 6,423 5,917 5,423 4,900 4,900 4,950 5,000 5,100 5,666 4,988  
    % change* 4.4 -8.5 -10.1 -6.4 -10.7 -13.7 -21.8 -23.7 -16.3 -7.8 4.1 -12.5 -12.0  
New Home Sales (000s,saar) 1,283 1,051 864 853 855 732 670 690 690 695 695 778 693  
    %  change*  6.6 -18.1 -22.0 -25.3 -21.7 -23.6 -22.5 -19.1 -19.3 -5.1 3.7 -26.0 -10.9  
           
Med. Resale Price $219,600 $221,900 $219,300 $214,300 $224,100 $222,300 $210,000 $205,000 $210,000 $210,000 $220,000 $217,843 $211,328  
    % change* 12.4 1.0 -2.7 -2.0 -1.1 -1.2 -4.2 -4.3 -6.3 -5.5 4.8 -0.80 -3.0  
Avg. Resale Price $266,600 $268,200 $265,900 $261,200 $271,900 $268,500 $240,000 240,000 250,000 255,000 260,000 $261,157 $251,353  
     % change* 9.1 0.6 -1.8 -1.6 -0.5 -0.7 -9.7 -8.1 -8.1 -5.0 8.3 -2.0 -3.8  
Med. New Home Price $240,900 $246,500 $245,400 $257,400 $242,200 $241,700 $225,000 $220,000 $230,000 $240,000 $230,000 $242,546 $230,018  
     % change* 9 2.3 0.7 3.9 -1.7 2.6 -8.3 -14.5 -5.0 -0.7 2.2 0.7 -5.2  
Avg. New Home Price $297,000 $305,900 $299,600 $322,100 $310,100 $298,500 $280,000 $270,000 $280,000 $300,000 $290,000 $304,176 $285,036  
      % change* 8.2 3.0 1.8 5.5 2.5 3.1 -6.5 -16.2 -9.7 0.5 3.6 2.4 -6.3  
           
Housing Starts (000s,saar) 2,068 1,804 1,555 1,460 1,464 1,304 1,000 980 950 930 1,000 1,307 965  
      % change* 5.7 -12.8 -24.8 -31.4 -21.3 -23.5 -35.7 -32.9 -35.1 -28.7 0.0 -36.8 -26.2  
*Comparison with same period in previous year. Real GDP,home sales/starts are at seasonally adjusted annual rates (saar).  
Sources:   Bureau of Economic Analysis, Bureau of Labor Statistics; Conference Board; Freddie Mac;   
                    Housing indicators: National Association of Realtors; Census Bureau.