Home sales softening?
The National Association of Realtors is predicting a slowdown in home sales and softening of price gains. The NAR is forecasting that home sales will be down 2.24% over record numbers in 2004. This result would still be the 2nd highest in history with 6.62 million home sales.
New home starts are expected to rise 1.4% to 1.98 million units, the highest level of new construction since 1978.
NAR chief economist David Lereah is predicting an increase in 30-year fixed mortgage rates to 6.8% in the fourth quarter of 2005.
While these downturn predictions from 2004 are of concern, the market is still close to historic levels. I continue to be optimistic, especially in the SW Florida market.
Home Sales to Soften With Firm Price Appreciation [Realtor Magazine Online]