Realtors say home prices are 'close to a peak,' with condos to fall

By Kathleen M. Howley
Bloomberg News

August 10, 2005

U.S. home sales are "close to a peak" and prices will rise next year at about half the rate of 2005, the National Association of Realtors said.

The nationwide median price of an existing home will increase 5.2 percent to $215,200 next year, the smallest gain since 2000, when prices rose 4.1 percent, according to a forecast Tuesday by the Washington-based trade group. Sales of previously owned homes will fall 3.6 percent and sales of new homes will drop 4.5 percent.

"The housing market is probably close to a peak right now in terms of sales activity, but there is tremendous momentum," said David Lereah, chief economist for the association, in a statement. "Sales are expected to coast at historically high levels into next year, but they will trend slightly downward."