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| In 2006 Projected U.S. Home Sales To Be Second Best In History, Key Industry Observers Predict |
In 2005 7.07 million home sales set a real estate record for
fifth straight year. After five consecutive record years of
existing homes for sale nationwide, key real estate industry
observers are optimistic that 2006 will be the second best year
in history and that the national median home prices will
continue to increase, although at a slower pace that last year's
10.5%.
Additionally, the inventory of unsold homes for sale is
currently at a five-month level. A six-month supply is generally
indicative of a more balanced real estate market between buyers
and sellers demand. Consumer sentiment has also rebounded since
last fall despite |
continued Middle East, energy home prices and
mortgage rates concerns. January's 106.3 index rating by the
Consumer Board was the highest in three years. Historically,
home buyer activity increases as consumer confidence improves.
Actual home sales usually close 30 to 90 days later.
David Lereah, chief economist for the National Association of
Realtors, predicts a slight falloff in existing home values in
sales in 2006: "This is part of the real estate market
adjustment we're anticipating, with a soft landing in sight for
the housing sector. The level of homes for sale activity is now
at a sustainable level and is likely to pick up in |
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the months
ahead." He said that overall fundamentals remain solid, driven
by population and job growth. Home sales totaled 7.07 million in
2005, up 4.2% over 2004. (See charts.)
Michael Bearden, president and CEO of HouseHunt, Inc., agrees:
"Our quarterly Current Real Estate Market Conditions surveys
accurately reflect - and in some cases anticipate -- these
market changes. This knowledge gives our member agents a
competitive edge as local real estate market experts in their
exclusive marketplaces. Looking ahead, we feel very positive
about our system, our positioning in the industry and the
ability of our member agents to capture more |
leads and close
more business."
David Liniger, chairman of RE/MAX, said that 2005 was the best
year he has ever seen and anticipates that this year will see a
mild correction in both home prices and sales. He still predicts
that 2006 will be second-best to 2005 for sales.
About the author:
Monte Helme is a national public relations consultant with
HouseHunt, Inc. Previously, he was vice president of public
relations and publications for Century 21 Real Estate Corp. Find
real estate and homes for sale
through public MLS.
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