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| Home Sales Prices to Dip Temporarily  Home sales during the rest of 2006 will be lower than earlier projections as the market works its way through an inventory and price imbalance, according to the National Association of Realtors. This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions prices dip temporarily below year-ago levels as the market works through a build up in housing inventory. The national median existing-home price for all housing types is expected to grow 2.8% this year to $225, 900, with the median new-home price rising only 0.2% to $241, 400. New-home appreciation is dampened by builders offering incentives to reduce inventory.Existing-home sales are forecast to fall 7.6% to 6.54 million in 2006, the third best year after consecutive records in 2004 and 2005. New-home sales should to drop 16.1% this year to 1.08 million, the fourth highest on record. Housing starts are projected to decline 9.6% to 1.87 million in 2006. The slowdown occurred mostly in higher cost markets, while other areas continued to expand. The unemployment rate is expected to average 4.8% for 2006, while annual inflation, as measured by the Consumer Price Index, is forecast at 3.5%. Growth in the U.S. gross domestic product should be 3.4% this year. Inflation-adjusted disposable personal income is projected to grow 3.5% in 2006. write your comments about the article :: © 2006 Construction News :: home page |