Residential real estate sales expected to reach near-record highs in 2005

Sales, price increases forecast to slow from 2004 pace

The median price of existing homes is expected to grow 6.3 percent this year, reaching $196,900, according to the latest forecast by the National Association of Realtors. The median price for new homes, meanwhile, is projected to rise 5.6 percent this year, reaching $232,800.

Sales of existing-homes, including single-family and condo, should ease 2.4 percent to a total of 6.62 million this year, second to the record 6.78 million sales in 2004, the association announced. New-home sales are forecast at 1.14 million sales in 2005, or 5 percent less than the record of 1.2 million last year. Housing starts are expected to rise 1.4 percent to 1.98 million units in 2005, the highest level of housing construction since 1978.

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