NAR: 2006 Predictions

The National Association of Realtors (NAR) is forecasting that in 2006 "the median existing-home price to grow by 5.2 percent and the median new-home price to rise 7.1 percent." It is simply not going to happen. There has been such strong national home price appreciation the past few years that an additional 5% in 2006 is unrealistic. The bubble markets will be seeing price declines next year. A national 5% price appreciation for existing homes is not in the cards.