The National Association of Realtors (NAR) expects sales of new and existing homes to drop in 2006 while home prices continue to rise.
Existing home sales are projected to fall 3.7% in 2006 to 6.84 million while new homes will drop to 4.8% next year to 1.23 million. Housing construction is also expected to fall back 4.8% next year to 1.92 million.
Despite slowing activity, the NAR expects the national median home price to continue to increase next year. Existing U.S. median home price is expected to rise to 6.1% next year to $221,400. The median price of new homes is projected to increase 7.3% in 2006 to $250,100. Temporary price declines in certain areas are still possible if job markets are weak or housing is oversupplied.
Source: Dow Jones Newswire, December 13, 2005
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