Home Sales Will Likely Cool Nationwide

Home sales will likely cool nationwide, but continue boosting economy...

The Arizona Republic reports that the national real estate boom is winding down to an expansion, according to a forecast released last week by the National Association of Realtors Conference and Expo.

Home sales remain at historic highs, and only modest cooling is expected in 2006, said David Lereah, the association's chief economist. Rising mortgage rates, while remaining below 7 percent next year, will cause slowing of the sales pace, he said. "As interest rates rise and home sales ease, it should help to bring the market closer to equilibrium between home buyers and sellers," said Lereah. "That is expected to take pressure off home prices and allow appreciation to settle to a more normal pace in 2006." More...