Tuesday, January 24, 2006

January 2006 housing forecast from the National Association of Realtors

The National Association of Realtors® (NAR) is predicting that the housing market will "return to a more normal rate of price growth" in 2006.

First, the NAR forecasts that "After setting a fifth consecutive annual record ... existing-home sales are forecast to ease by 4.4 percent to 6.79 million this year." This will still be the second highest level on record.

As for new home sales, NAR is predicting that they "are expected to decline 6.0 percent to 1.21 million in 2006 – that also would be the second best year in history."

And, as for housing starts (the third segment of the real estate market), "Total housing starts for 2005 are seen at 2.07 million units – the highest since setting a record 1972 – with a 6.6 percent slowing to 1.94 million this year."

To read more: January 2006 NAR Forecast

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