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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.

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Escaping Finance

Personal finance is a scary subject for some people because it conjures up all sorts of personal fears about budgeting, managing investments and buying Vs renting a home. Fear and anxiety are common responses to the topic of personal finance regardless of an individuals level of education or experience in other areas, particularly business. As a result, many people avoid dealing with their personal finance issues until they are almost at crisis point and in serious credit or debt trouble.

But before you can make any decision about your personal finance or take any action regarding your finances, you should obtain a firm understanding of your current financial position. Surprisingly, many people have only a vague idea how much income they actually bring in each month and then how much they actually spend each month and whether there is a positive difference between these amounts that are in you favor.

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