Nationally, the housing market is experiencing a cooling process, but some states continue to show growth, according to a report from the National Association of Home Builders. We are coming off a very strong couple of years for the housing industry and markets are now cooling to more sustainable levels, said David Seider, chief economist for NAHB. Each market has different factors that affect its local economy and housing market, but overall we are forecasting an orderly slowdown in housing activity.
Home prices increased nationally by 13.2 percent last year, with the strongest gains primarily in states along the West and East coasts, the report noted. Much slower price increases are forecast for this year and in 2007. While home construction is expected to decrease in most states, it will increase in other states. The same scenario is expected with the home resale market.
The effects of last years hurricane season are still being felt in several states. This is spurring more multifamily housing construction starts this year and will drive an even bigger jump in construction activity next year, the report predicted. While the rebuilding and repair process is proceeding slowly, the pace of that activity is expected to pick up in 2007. |
