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Housing Prices News Wednesday, September 07, 2005 -
As the growing U.S. economy continues to generate new jobs and healthy gains in household income, Seiders predicted that the housing price boom will start “quietly winding down, and this should help restore a healthier balance between supply and demand in local markets.”
“A recent Federal Deposit Insurance Corporation study shows that house price booms lead to price busts only when local economies stumble for other reasons, such as a national recession,” he said. “With the U.S. economy in the midst of a strong expansion, those risks are quite low for the foreseeable future.”
The recent hurricane had the effect of reducing housing inventory resulting in an increasing demand for housing in nearby communities. Pending Home Sales Thursday, September 01, 2005 - Pending home sales declined slightly but remain historically high, according to the National Association of Realtors. The Pending Home Sales Index, based on data collected for July, slipped 1.0 percent to a reading of 125.1, but is 3.5 percent higher than July 2004.
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