Another Record Year Predicted For Housing

2006 outlook

Buyers
Will continue to have a lot of choices in houses and mortgage products. Should face only moderate price increases because of the big supply. May face slightly higher mortgage interest rates.

Sellers
Will face a lot of competition from other homes on the market. Should be able to sell if the house is priced right, is clutter-free and in good shape. May want to shop for an agent with experience in tougher markets.

Realtors
Will have to work harder to sell houses because of the number on the market. Should be an expanding rather than a shrinking field, increasingly attracting young people straight out of college. May take advantage of new technology such as podcasts, blogs and mobile Web access to conduct business.

Builders
Will go into the spring with more inventory than has been common in recent years. Could face hard questions from lenders about borrowing to add to the inventory. May see prices on materials decline, since suppliers have geared up production and rebuilding in hurricane areas is likely to be slow.