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Housing Slowdown

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Submitted by Steve on Wed, 2006-01-25 17:42.

The five-year housing boom is showing increased signs of cooling, and that's likely to mean slower growth for the entire national economy. The big question now is whether home prices will come crashing to earth with even more severe consequences.

The National Association of Realtors reported Wednesday that sales of existing homes climbed to an all-time high of 7.072 million units in 2005, up 4.2 percent from 2004 and the fifth straight year sales have set a record.
In a sign of slowing activity, sales fell by 5.7 percent in December, marking the third straight monthly decline, something that had not occurred since early 2002.

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