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The housing numbers are out from the National Association of Realtors for 2006 and they showed that sales were down by 8.4 percent while the median housing prices were up 1.1 percent for the year. This is in line for what we expected on a national picture for the most part although I am surprised that housing prices have remain resilient.

If I was buying today, I would move very slowly and look for the right opportunity. I assume that the that the average buyer feels the same way and is looking for an opportunity to find the right deal. I also suspect that the amount of potential buyers that are sitting on the sideline are building up, and once the market turns, there will be a mini rush to buy.

The National Association of Realtors reported that sales of existing homes were down 0.8 percent last month, a bigger decline than had been expected. For the year, sales fell by 8.4 percent, the biggest annual decline since 1989, when existing home sales fell by 14.8 percent.
The sales figure underscored the sharp contraction that is going on in the once high-flying housing market, which before last year had set sales records for five straight years.
Even with the sharp drop in sales last year, the median price of an existing home sold in 2006 managed to rise a slight 1.1 percent. But that was far below the double-digit gains during the boom years. The median home price had risen by 12.4 percent in 2005.
After a five-year boom, housing slowed significantly last year, which has caused ripple effects throughout the economy with rising job layoffs in construction and other housing-related industries.
But economists said they believe the low point for housing has been reached and they are forecasting a slow rebound in 2007. Because of that optimism, analysts don’t believe the slump in housing will drag the overall economy into a recession.  via BREITBART.COM

So when the economist think that the housing market will not bring down the economy, I am thinking they see the buildup of potential buyers n their data. The demise of the speculation market has flooded the industry with excess inventory at the same time interest rates jumped and conventional wisdom and the press foretold doom.

Yet the 20 somethings are looking to own and partake in the American dream. Once the excess inventory is absorbed, my guess is that the market will pick right back up quickly and the experts will be shocked when the data hits the street.

Related posts:

1. Los Angeles Home Sales Fall 12.9%, But Median Price Increases 6.5 Percent
2. Home Sales Inch Up in March 2006 While Inventory Grows Quickly
3. April 2007 Existing Home Sales Fall 2.6 Percent
4. Home Sales Fall for 5th Straight Month - August 2006 Year over Year Lower Nationally
5. Northern Texas Sees Pre-owned Sales Drop - Median Prices Rise