Published on 01 March 2006 at 03:37 pm
Filed in Property News for Florida USA » Another Positive Year for the US Real Estate Market
According to the National Association of Realtors, 2006 will be yet another record year for the real estate market in the US in terms of sales volumes, underlying property price increases and consumer demand.
In a recent announcement about their forecast for the real estate sector in 2006, the chief economist from the National Association of Realtors stated that a predicted market slowdown had already occurred and that the prospects for 2006 were now overwhelmingly positive and sustainable.
According to the NRA, 2006 is likely to be the third strongest year for the real estate market in America on record – only outstripped in terms of sales values and price increases by 2004 and 2005.
The reasons for the National Association of Realtors’ positive predictions are manifold and include the fact that unemployment in the US will likely remain stable and low at 4.8% throughout 2006 whilst disposable personal income will rise by around 4%, any interest rate increases that have been predicted will not push mortgage rates higher than the market can currently afford and national median house prices are predicted to increase by up to 5.7% as a result.
2006 will not be as positive a year as either 2004 or 2005 however, and the NRA’s chief economist urged people to remember the fact that property markets tend to be cyclical; he also pointed out that sales volumes have fallen recently but the Association are in agreement that sales volumes are sustainable at current levels.
Despite the warnings that the market will not be as buoyant in 2006 as it was in either 2004 or 2005, the emphasis of the announcement made by the National Association of Realtors was that 2006 will be another positive year for real estate in America market because demand will remain strong, first time buyer interest will continue and home sellers, once assured an easy sale, are now prepared to put in a little extra work to ensure that they get a fast sale and at the price they want.
The NRA’s predictions for house sale volumes in 2006 are 6.7 million resales, 1.2 million new home sales and 1.9 million new build starts with the average price increase existing home owners can expect to enjoy upwards of 5% in 2006 and the average asking price increase on a new home likely to rise by upwards of 5.7% throughout the year.
