Home Sales Post Unexpected Gain - National

By Martin Crutsinger Associated Press - Full Story . . . WASHINGTON, D.C. - "Sales of existing homes had fallen for five straight months before an unexpected increase in February, helped by unusually warm weather." "The National Association of Realtors reported Thursday that sales of existing single-family homes rose by 5.2 percent last month to a seasonally adjusted annual rate of 6.91 million units. " "Nationwide, the median sales price for an existing home - the point where half the homes sold for more and half for less - rose to $209,000 in February, an increase of 10.6 percent from February 2005." "Many economists believe that price appreciation will slow from double-digit increases to gains of about 5 percent this year with sales declining by about 5 percent, reflecting continued increases in mortgage rates. If that forecast comes true, then the housing boom of recent years will slow to a more sustainable pace." Patrick Newport, U.S. economist for Global Insight, a private forecasting firm, said all signs point to further declines in housing sales this year. He predicted the declines would be moderate. "The housing slowdown will be gradual and take place over the next three to four years," he said. He predicted that the housing slowdown would reduce overall economic growth by two-tenths of a percentage point this year and by one-half of a percentage point in 2007.