existing-home sales will remain historically strong this year while the pace of
price appreciation should ease, according to the NATIONAL ASSOCIATION OF
REALTORS¨.
Sales of
existing-homes, including single-family, condo, and co-op, are expected to
decline 3.2 percent to a total of 6.57 million* in 2005 from a record 6.78
million last year. New-home sales are seen at 1.13 million this year, 5.9
percent below a record of 1.20 million in 2004; the projections for both new-
and existing-home sales in 2005 would be the second best on
record.
…”As mortgage interest
rates creep up and home sales slow a bit, we should see a better balance between
home buyers and sellers?that will take some of the pressure off of home
prices.”
Both new- and existing-home sales will
remain historically strong this year while the pace of price appreciation should
ease, according to the NATIONAL ASSOCIATION OF
REALTORS¨.
Sales of
existing-homes, including single-family, condo, and co-op, are expected to
decline 3.2 percent to a total of 6.57 million* in 2005 from a record 6.78
million last year. New-home sales are seen at 1.13 million this year, 5.9
percent below a record of 1.20 million in 2004; the projections for both new-
and existing-home sales in 2005 would be the second best on record. Housing
starts are forecast to slip 0.7 percent to 1.94 million units in
2005.
David Lereah, NAR’s
chief economist, says home sales are starting to ease to more sustainable
levels. “After setting four consecutive record years, the housing market is due
for a breather,” he says. “As mortgage interest rates creep up and home sales
slow a bit, we should see a better balance between home buyers and
sellers?that will take some of the pressure off of home
prices.”