USA Today
Washington (Reuters) — House prices should increase about 5.8% this year, far below the double-digit appreciation posted in recent years, as mortgage rates rise and buying slows, a trade group said Monday.
The National Association of Realtors, in a monthly outlook, said the national median existing-home price should rise to $220,300 this year while the median price on a new home should increase 5.4% to $250,200.
Resales of U.S. homes will likely decline 5.7% to 6.67 million in 2006 from the record 7.08 million in 2005. new-home sales should fall 7.7% to 1.18 million from a record 1.28 million in 2005. Still those sales levels would be the third highest after 2005 and 2004, the group said.
Housing starts should hit 1.98 million this year, down from 2.06 million in 2005, the group said.
The 30-year fixed-rate mortgage should increase to 6.9% in the fourth quarter of the year, the Realtors said.
