Housing Market rounds out record year

California Association of REALTORS® (C.A.R.)
National existing home sales are expected to jump 4.7 percent to 7.10 million units in 2005, which tops last year's record, NAR recently reported in its year-end forecast. The Association also projects new home sales to rise 7.0 percent to 1.29 million units this year.

According to the forecast, the housing market will slow in the year ahead, leveling to a "more normal and balanced market." Despite a decline in sales activity, NAR anticipates the second best housing market on record in 2006. Next year, existing home sales are expected to decrease 3.7 percent to 6.84 million units, while new home sales are projected to fall 4.8 percent to 1.23 million units.

"The slowdown amounts to a tapping of the brakes on a hot market," said NAR Chief Economist David Lereah. "Home sales are coming down from a mountain peak, but they will level-out at a high plateau - a plateau that is higher than previous peaks in the housing cycle."