In 2006 Projected U.S. Home
Sales To Be Second Best In History, Key Industry Observers Predict;
Consumer Real Estate Confidence Highest In Three Years
By: Monte Helme
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 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.; vice president of communications for AmeriNet
Financial Services (now LendingTree); assistant city editor/Orange County
for the Los Angeles Times; executive sports editor of the Rockford, IL,
Morning Star and Register-Republic; and reporter for the Dixon, IL,
Evening-Telegraph. Find real estate and homes for sale through public MLS
and by visiting websites: HouseHunt.com and SuperMLS.com powered by
HouseHunt, Inc.
media@househunt.com
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