Home Sales Expected to Pick Up in ‘07
This week, the National Association of Realtors announced that home sales in 2006 dropped at its fastest rate in 17 years. Sales dropped 8.4% in 2006, and .08% in the month of December. Additionally, the inventory of unsold existing homes was 23.3% above the year-ago period. While sales in 2006 were the third-highest on record, foreclosures shot up 42%. However, the Federal Reserve still maintains that housing demand has likely stabilized and that the economy should be able to moderately expand even if housing continues to slow.