NAR Hikes Home Sales Forecast

Home sales projections by the National Association of Realtors have moved even higher in the wake of hurricanes Katrina and Rita, and now call for record existing-home sales of 7.07 million this year, the NAR has reported.That would amount to a 4.2% rise, the association said. As for new-home sales, the NAR is projecting a 7.1% increase in 2005, to 1.29 million. And the forecast for single-family and multifamily housing starts calls for a 4.5% increase to 2.04 million units this year, the best overall showing since 1973, while single-family starts alone are projected to set a record of 1.70 million, the association said. "Post-Katrina, our sales projections for this year have moved even higher," said NAR chief economist David Lereah. "Short-term momentum is very strong, and our Pending Home Sales Index just set a record. In addition to the housing needs of hurricane victims, we may be seeing some 'fence jumping' from homebuyers who are getting into the market before interest rates move higher." The NAR can be found online at http://www.realtor.org.