Industry News

Real estate price gains expected to reach double digits

Realtors forecast 10.5% jump in existing-home values in 2005

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The national median existing-home price for all housing types is forecast to rise 10.5 percent in 2005 to $204,600 – the strongest rate of price growth in 25 years – while the median new-home price should increase 5.2 percent to $232,400, the National Association of Realtors reported today in its latest forecast for the year. Existing-home sales are forecast to increase 2.9 percent to 6.98 million for 2005, while new-home sales are seen to rise 4.8 percent to 1.26 million this year, the association also announced today. Total housing starts – single-family and multifamily – should grow by 3.2 percent to 2.02 million units in 2005, the highest since 1978; and single-family starts are projected to set a record of 1.67 million, the association announced. David Lereah, NAR's chief economist, said, "The housing market is probably close to a peak right now in terms of sales activity, but there is tremendous momentum. Sales are expected to coast at historically hi...