Industry News

Dropping the real estate boom in 2005

The real estate market slowed in some markets in 2005

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Some real estate professionals may remember 2005 as the beginning of the end of the boom -- the year when the housing market let out some steam and began to fall back toward Earth. Some super-heated markets cooled as interest rates climbed, for-sale inventory grew and home-price increases moderated. This is the year that Federal Reserve Board chairman Alan Greenspan described "signs of froth" in the real estate market, where prices have in some instances risen to "unsustainable levels," adding that, "we certainly cannot rule out declines in home prices, especially in some local markets." His statements sent real estate industry groups scampering to shore up public confidence in the health of the market. National statistics don't paint a detailed picture of a localized real estate downturn, though, and 2005 was actually another smash hit for the U.S. real estate industry at large. Sales of existing homes are on track to beat last year's record, according to National Association of Real...