Housing boom fading, leading real estate economist says.

Publication: The Dallas Morning News (Dallas, Texas) (via Knight-Ridder/Tribune Business News)

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COPYRIGHT 2005 The Dallas Morning News

Byline: Steve Brown

Oct. 29--SAN FRANCISCO -- A combination of higher interest rates and years of rising prices could soon take some air out of the hot U.S. housing market.

"The boom is showing some signs of tiring," David Lereah, chief economist with the National Association of Realtors said Friday. "We are looking at about a 4 percent drop in home sales next year.

"We are projecting a significant drop in the price appreciation pace," Mr. Lereah said.

But even though the velocity of the housing market will subside, "we are looking for a soft landing," he told real estate agents from across the...

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