Here is some information out of a recent National Association of Realtor's    press release regarding the home sales market, and predictions for value increases in 2006:
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WASHINGTON (December 12, 2005) – "The housing market for 2005 is headed for a fifth consecutive annual record, and sales activity in 2006 is expected to be the second best year in history, according to the National Association of Realtors^®.

The 30-year fixed-rate mortgage should trend up modestly and reach 6.6 percent during the second half of 2006.  Existing-home sales, expected to rise 4.7 percent to 7.10 million this year, are likely to decline 3.7 percent in 2006 to 6.84 million. New-home sales, projected to increase 7.0 percent to 1.29 million this year, are forecast to drop 4.8 percent to 1.23 million in 2006 – also the second best on record. Total housing starts for 2005 should grow 5.8 percent to 2.06 million units, the highest since 1972, and then decline 4.8 percent to 1.92 million next year.

NAR President Thomas M. Stevens from Vienna, Va., said that housing has always been the soundest investment for most families. “As the old saying goes, homeownership beats the heck out of a drawer full of rent receipts,” said Stevens, senior vice president of NRT Inc. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a homeowner household is 36 times higher than a renter household.

Stevens said that the national median home price has never declined since good recordkeeping began in 1968. “Although there can always be a temporary decline in a given area if jobs are weak and there is an oversupply of homes on the market, people who stay in their homes for a normal period of homeownership generally see healthy returns over time. There are no guarantees, but there are very good odds.”

The national median existing-home price for all housing types, which is experiencing a surge estimated at 12.7 percent to $208,800 for 2005, is expected to rise another 6.1 percent in 2006 to $221,400. The median new-home price is likely to rise 5.5 percent to $233,100 in 2005, and then grow by 7.3 percent next year to $250,100 as higher construction costs impact the market."
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Overall, 2006 is predicted to be a very good year for home sales, yet not as good as 2005.   Without much doubt, interest rates will increase (moderately) and forecasts continue to support rising values, but at a slower pace than this year.   Some markets will experience  less growth than predicted and some will experience more growth than predicted.  These are all averages and each region and local market varies with economic conditions.    It's important to work with a real estate professional to constantly keep you informed of current local information... and to explain the pros and cons of any transaction for your specific circumstances.

Carol@TopPropertiesWenatchee.com
www.TopPropertiesWenatchee.com