Home prices still headed high in 2005

‘One good thing you can say about the pundits who keep predicting that the end is near for rising home prices: They’re consistent. They’ve been dead wrong year after year.

Despite their near-certainty that the market would cool in 2004, median U.S. home prices rose 9%, and a vast majority of cities saw a bigger increase than in 2003. In fact, the National Association of Realtors proclaimed 2004 the hottest U.S. home-sales market in history. Says Thomas Kunz, CEO of Century 21 Real Estate: “There’s been no rhyme or reason to prices because of multiple offers and bidding wars.”

And those who fear that we’re in a fragile real-estate bubble can relax — at least for now. David Seiders, chief economist for the National Association of Home Builders, speaks for most chastened housing-market analysts when he says that the chance that median home prices will drop is “zero nationally, zero in major regions and close to zero in any state,” although some individual cities may see declines.’

Read more at MSN Money - Home prices still headed high in 2005

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