NAHB Sees Strong New-Home Sales in '03

While sales of newly constructed homes are on a pace for a record year, the National Association of Home Builders is forecasting that sales of new single-family homes will decline by only 2.3% next year.NAHB economists expect sales to total 958,000 by the end of this year. "That is a record, but we do expect some erosion as we go forward," said Stanley Duobinis, the NAHB's director of forecasting. The NAHB is forecasting that new-home sales will decline to 936,000 in 2003. Meanwhile, the Federal Reserve Board's Beige Book picked up some weak spots in new-home sales, but overall residential real estate markets continue to be "strong" in most Federal Reserve Bank districts. "In the Chicago and Dallas districts cancellations of house-construction contracts have increased," the Beige Book says.