Industry News

Real estate market to slow in 2005

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House-price gains are expected to slow this year compared to 2004, with some metropolitan areas seeing particular lulls and even decreases in price, economists said today during a 2005 housing industry forecast hosted by the National Association of Home Builders. A projected rise in the Fed rate and mortgage interest rates were cited by some panelists as possible contributors to a slower housing market in 2005. "House prices I'm pretty much convinced we will see a slowdown from what looks like outlandish rates of increase," said David Seiders, chief economist for the association. David Berson, chief economist for Fannie Mae, said he expects home prices increases to increase about 3.5 percent nationwide in 2005, compared with a 10.5 percent increase in 2004. "There will be some (metropolitan areas) where prices will go down. We will almost certainly see some decline in some areas." Housing markets where real estate investors have been very active, adjustable-rate mortgages have been ve...