WASHINGTON (Map, News) - The U.S. housing market looks like it may be headed for a soft landing instead of the crash many would-be home sellers have feared.

According to figures released Wednesday by the National Association of Realtors, home sales should bottom out by the end of 2006 and begin appreciating again by early next year — though not at the double digit rates seen in 2004 and 2005.

Analysts said the frenzied, record-breaking market of the last several years is nearing the end of its “correction” and prices should settle at more sustainable levels.

“Many potential home buyers who have been taking a wait-and-see attitude or taking their time and being methodical in the search process are being enticed by lower home prices,” said David Lereah, NAR’s chief economist.

“Given a positive economic backdrop of lower interest rates and job creation, we expect sales activity to pick up early next year.”

Nationally, existing home sales are expected to drop 8.9 percent in 2006 and new home sales are expected to drop by 17.3 percent. Housing prices are expected to rise by 1.6 percent for 2006.

Locally, home sales are expected to stay in line with national predictions. Economists with the George Mason University Center for Regional Analysis predict housing prices will continue to decline in many parts of the region over the next few months and pick up again next year.

In Northern Virginia, housing prices in September were down nearly 6 percent over the previous year, but the average price remains above $500,000.

kwilmeth@dcexaminer.com

Comments from Examiner Readers

12:16 PM MST on Tue., May. 13, 2008 re: "City opens arms to small businesses"

Examiner Reader said:
Conscientious observer - you are an idiot and deserve what happened to you.

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2:24 PM MST on Mon., Apr. 14, 2008 re: "Home Depot drops South City proposal"

Conscientious Observer said:
A 'heads up' for those men who may be regular Home Depot customers. Over the last month I became a victim of a clever scam while out shopping. Simply going out to get supplies has turned out to be quite traumatic. Don't be naive enough to think it couldn't happen to you or your friends. Here's how the scam works: Two seriously good-looking 25-28 year-old girls come over to your car as you are packing your shopping into the trunk. They both start wiping your windshield with a rag and Windex, with their breasts almost falling out of their skimpy T-shirts. It is impossible not to look. When you thank them and offer them a tip, they say 'No' and instead ask you for a ride to another Home Depot. You agree and they get in the backseat. On the way, they start undressing. Then one of them climbs over into the front seat and starts crawling all over you, while the other one steals your wallet. I had my wallet stolen April 4th, 9th, 10th & twice on the

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8:24 PM MST on Sun., Feb. 3, 2008 re: "Southwest Airlines brings low-cost flights to Dulles"

Examiner Reader said:
Are there flights out of MacArthur Airport on Long Island New York to Washington Dulles

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3:29 PM MST on Sat., Feb. 2, 2008 re: "A complaint about delivery of The Baltimore Examiner"

Examiner Reader said:
I understand that we should not choose a President based on his religious beliefs,but tell me---how can we support a President in defending our country when he doesn"t even believe in pledging allegiance to it!!!!?????

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9:31 AM MST on Thu., Jan. 31, 2008 re: "New alarm aimed at fighting construction theft"

Examiner Reader said:
The Dewalt system is good for notification but the alarm only sounds for 20 seconds and shuts off. The alarm is not loud at all if it were in the middle of a large job site nobody would hear it.

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9:20 PM MST on Sun., Dec. 30, 2007 re: "Celsion CEO resigns as firm deals to retain market listing"

Makis said:
Nice!

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10:19 PM MST on Wed., Dec. 19, 2007 re: "Harford County fighting the battle of Fort Monmouth"

Examiner Reader said:
I can't believe Fort Monmouth has a bunch of whinos have they ever heard of commuting on the Acela from New Jersey every morning my guess is no.

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10:39 AM MST on Wed., Dec. 12, 2007 re: "Hale keeps his focus on achieving success"

Examiner Reader said:
Ed Hale is a real inspiration. He's the perfect model of the American dream. LL Detroit

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12:06 PM MST on Fri., Aug. 24, 2007 re: "Harford County fighting the battle of Fort Monmouth"

Examiner Reader said:
fort monmouth should close down! it's a waste of tax payers money. (civilian employee's have 2 hour lunch breaks, there is so much infidelity going on there, sex in parking lot, etc) The come and go as they please, and we the tax payers pay for this. Put the money where it is needed, in defense!

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