Homes Sales to Drop Slightly in 2006

According to the National Association of Realtors, new home sales are expected to drop by 4.8% and existing home sales are expected to drop by 3.7% in 2006. This is coming off of a record year for both in 2005.

Despite slowing activity, the NAR says it expects the national median home price to continue to increase next year, as it has each year since reliable record keeping began in 1968. The U.S. median price for existing homes is expected to rise 6.1% next year to $221,400 after an estimated 12.7% surge this year. The median price for new homes is projected to increase 7.3% next year to $250,100 after rising 5.5% this year.

Interesting information - obviously those "average" home prices don't apply here in Chicago, but the trends should.