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Home » Family Articles » In 2006 Projected Us Home Sales To Be Second Best In History Key Industry Observers Predict Cons

In 2006 Projected U.S. Home Sales To Be Second Best In History, Key Industry Observers Predict; Cons

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 â€" 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.

And here is another random article you might be interested in...

8 Penny Stocks to Avoid

There are many good penny stock investments available, which could turn a small amount of capital into a small fortune very quickly. However, to discover these you need to know what to look for and what to avoid. When searching for that one big payoff, steer clear of the following examples.

The Phone Salesman - Anyone who is attempting to sell you investments over the phone should be considered an enemy. They have high-pressure sales tactics, and effective, believable arguments. However, they are not doing you any favors, no matter how good they make an investment sound.

They are operating in their best interest to dump over-the-counter stock on you, and the money you pay in will go into their own pockets, or the pockets of their company.

There has never been a need for good companies that are going places to resort to these type of tactics, but there has always been a need for poor, sinking, or shady companies to do so. If you choose to ignore this advice you deserve what happens to your investment.

You may also run into difficulty trying to find a buyer for your shares once you decide it is time to sell.

Very Low Volume Stocks - Without much trading activity it becomes increasingly difficult to buy or sell for the prices you want. As well, it becomes nearly impossible to get an understanding of where the stock price is heading, or to calculate fair valuations for the company's stock price.

Not only that, but companies subject to low trading volume generally do not have a lot of positive interest.

The Hot Tip Stock - There are actually professional promoters who make a very good living generating and nurturing rumors about some penny stock that's guaranteed to go through the roof. The entire concept hinges on the rumor being spread from person to person, at the office, over the phone, or at social venues.

The promotional ploys can be very costly for investors who get involved without special knowledge about the company or the actions of the promoter. In most cases if a stock really is going through the roof you won't hear a word about it, because a select few individuals will be very intent on keeping the information to themselves.

Guaranteed Performance - If a stock is guaranteed to go up, it will almost always go down. Nothing is ever certain, especially on the stock market. When someone guarantees certain performance out of a stock, they may be a promoter, naive investor, self-serving broker, or have heard the guarantee from another source. In any case, don't believe them. Instead check into the company yourself and if you feel it is a good investment, you may want to proceed.

Sinking Ships - When a stock has dropped a lot you may think that, "it can't go any lower," or that it is "a good bargain." Especially with penny stocks, you need to avoid this type of thinking because many sinking ships don't ever rebound, and they can go lower, and they aren't good bargains just because they cost less than before.

Commission Free - If you are interested in getting stock commission free you may think you are saving money, but it generally means that you are buying over the counter stock directly from a promoter or the company.

Either way, they take their own invisible 'commission' from you, either by selling to you for an arbitrary amount which is unfairly high, or selling to you for the asking price rather than the bid price based on their own current valuations.

International Penny Stock - We're not talking about living in the U.S. and steering clear of Canadian stock, or vice versa. We are talking about penny stock issues from Africa, Australia, European, Russian, or South American penny stock markets. First of all, you won't be too impressed with the level of investor protection and exchange honesty in some of these regions, and you most certainly won't be too impressed with the broker fees you incur when trying to purchase internationally.

Besides, if you can't find good penny stock investments in North America, you won't be able to find them anywhere else either.

Warrants and Rights - These are not technically stocks, but instead are derivative investments based on an underlying company's shares. However, they often appear like penny stocks because they sometimes get listed in the stock pages, and often trade for pennies.

It is unlikely that you will accidentally purchase derivatives, but make sure you know what you are trying to buy by understanding the listing criteria of the paper you are reading, or verifying your purchase with your broker.

To get free information about investing in penny stocks visit http://www.pennystocks.com. They offer information on the definition of penny stocks, getting started, benefits, risks and how to find a good penny stock.