Newsletter-

Existing Home Sales in U.S. Set Record Again in 2005

Sales of existing single-family homes set a record for the fifth consecutive year in 2005 and are expected to be the second highest in history in 2006 even though a more balanced market between buyers and sellers is emerging in many metro areas in the U.S. Demand is being fueled by demand from both move-up/repeat buyers and first-time buyers taking advantage of historically low mortgage interest rates. A slowing building supply of unsold homes was expected to continue in 2006.

Record existing home sales of 7.2 million in 2005 were the highest in history because of continued strong market fundamentals. David Lereah, chief economist for the National Association of Realtors, expects 30-year fixed mortgage interest rates to rise to 6.6% in the second half of 2006.

Lereah says he sees no evidence of country-wide price bubbles and anticipates slower price appreciation in 2006.