Christian Real Estate Blog

Historically Strong Home Sales Expected in 2006

article from RIS Media:
RISMEDIA, Dec. 13 - The housing market for 2005 is headed for a fifth consecutive annual record, and sales activity in 2006 is expected to be the second best year in history, according to the National Association of Realtors®.

David Lereah, NAR’s chief economist, said that market conditions are still favorable for housing. "The slowdown amounts to a tapping of the brakes on a hot market," said Lereah. "Home sales are coming down from the mountain peak, but they will level-out at a high plateau - a plateau that is higher than previous peaks in the housing cycle. This transition to a more normal and balanced market is a good thing."

The 30-year fixed-rate mortgage should trend up modestly and reach 6.6% during the second half of 2006.

Existing-home sales, expected to rise 4.7% to 7.10 million this year, are likely to decline 3.7% in 2006 to 6.84 million. New-home sales, projected to increase 7.0% to 1.29 million this year, are forecast to drop 4.8% to 1.23 million in 2006 - also the second best on record.

posted by Justin Smith @ 12/13/2005 08:44:00 AM