David Lereah
David Lereah
David Lereah is the President of Reecon Advisors, Inc., a real estate advisory and information company located in the Washington, DC area. Lereah was previously an Executive Vice President at Move, Inc. and before that, Chief Economist for the National Association of Realtors. Lereah served as the NAR's spokesman on economic forecasts, interest rates, home sales, mortgage rates, as well as other policy issues and trends affecting the United States real estate industry. Lereah was also the Chief Economist for...
appreciation good highest home interest level modest mortgage news quarter rates record sales seen since slowing strong sustained third
Mortgage interest rates were at the highest level since the third quarter of 2003. At the same time, we've seen strong double-digit appreciation in home prices, so a modest slowing from record sales was to be expected. The good news is that home sales are being sustained at historically high levels.
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A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling.
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The underlying fundamentals of the housing market are solid and sales will stay historically strong, but they will trend modestly down from current peaks. Masked by the data are early signs that housing is starting to wind down from a boom and will transition into an expansion - in other words, a soft landing.
home housing market means modest process
A modest slowdown in home sales, coupled with improvements in the housing inventory, means the market is in the process of normalization.
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A modest downtrend will be good for the long-term health of the housing sector.
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A modest downtrend to a sales volume that is expected to be the second-best year ever in 2006 will be good for the long-term health of the housing sector.
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The current pace of home sales activity remains historically strong - only eight months have had a higher sales pace. A modest downtrend, to a sales volume that is expected to be the second-best year ever in 2006, will be good for the long-term health of the housing sector.
both earlier expected half interest mortgage rates records rise sales second slower year
Not only have mortgage interest rates declined, but an expected rise in the second half of the year will be slower than in earlier projections. As a result, we now expect to set records for both existing- and new-home sales this year.
activity deal great picked regions
The nearby regions picked up a great deal of activity very quickly.
best housing recent year
So, 2005, when we look back, was the best year in housing in recent memory, probably of all time.
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This is the biggest annual home-price increase in any metro area on record.
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A new record is a bit unexpected, but so is the performance of mortgage interest rates which have been lower than forecast. When we look at recent job gains, we see all the positive factors coming together to coincide with a powerful demographic demand for housing.
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You're going to be taking away from Middle America. Everyone, whether you use the mortgage interest deduction or not, the value goes down. You've just reduced the retirement nest egg for everyone.
brakes hot tapping
The slowdown amounts to a tapping of the brakes on a hot market.