U.S. Home Sales 'Close To Peak'

The Arizona Republic reports that the National Association of Realtors (NAR) is predicting that prices for U.S. homes will rise next year at about half the rate of 2005.

NAR predicts that the median price of an existing home will increase 5.2% to $215,200 next year, the smallest gain since 2000. Sales of existing homes is expected to fall 3.6% and sales of new homes are forecast to drop 4.5% nationwide. NAR also predict that mortgage rates will rise to 6.5% in 2006, up from an average of 5.9% in 2005.

Locally, the article states that Phoenix home sales and price increases are also expected to drop in 2006, but still be at levels above the national average. Some market watchers are expecting the median cost of a Valley house to hit $300,000 next year. More...