Housing starts, existing home sales expected to decline
While housing starts for 2006 are projected to register another strong year, CHMC is predicting that we will be seeing a slow down in 2007.
Housing starts for 2006 are expected to reach 227,900 units while projections for 2007 are for a decline of about 8% to 209,100 units. Although the number of housing starts is anticipated to decline, this will be the sixth year that starts have exceeded 200,000 units in a given year.
According to the Multiple Listing Service, 2006 will be the second best year on record for existing home sales. At 481,700 units, the number is a slight decline from 2005 at 482,788. 2007 is expected to see a further decline in the number of units to about 462,200 units, a decline of 4% from 2006. 2007 will still be the third highest level on record.
The overall slow down in both sectors is expected to be the result of the slightly elevated interest rates resulting in higher mortgage carrying costs.
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National Housing Summary |
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Key Housing Market Indicators |
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2005 Actual |
2006 Forecasts |
2007 Forecasts |
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| Total housing starts (units) |
225,481 |
227,900 |
209,100 |
| Total single-detached houses |
120,463 |
118,800 |
107,600 |
| Total multiple housing units |
105,018 |
109,000 |
101,500 |
| Total MLS® sales |
482,788 |
481,700 |
462,200 |
| Average MLS® selling price ($) |
249,365 |
279,300 |
297,100 |
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