Home sales dropped in November in Northwest Indiana, falling by 5 percent from a year ago.

But the average selling price rose, and the trend could continue over the next two years, a Fortune magazine report said.

Buyers came away with 617 new and existing homes for the month in Lake and Porter counties combined, down from 651 in November 2005, according to information from the Greater Northwest Indiana Association of Realtors.

November sales brought the total number of homes sold in Northwest Indiana to 7,598 for the first 11 months of the year, down from 8,354 for the same period in 2005, a record year.

"The number of units are down, but they're down form the best year ever," said Pat Pullara, the Realtors' association director of governmental affairs.

The November median selling price of $135,000 rose from $129,900 a year earlier, a 4 percent increase.

Fortune Magazine reported this month that the Gary area could expect to see home prices increase by 3.2 percent in 2007, and by 2.2 percent in 2008.

The report focused on four U.S. regions and said the Midwest can expect a steady housing market over the next two years.

The region missed out on much of the housing boom seen in other parts of the nation, but "at least it won't suffer in the aftermath," the magazine reported.

Other Midwestern cities are also likely to see moderate increases in home prices, the report said.

Some cities won't fare as well, including San Diego, where prices are forecast to fall by 3.3 percent next year, down from a median price of $606,360 now; and Phoenix, where a 3.6 percent drop from $265,820 current median price is expected, according to the report.

The forecast for Northwest Indiana is no surprise, Pullara said.

"We do have a relatively stable market," she said.

Source:
http://www.thetimesonline.com/artic...24a007dab3e.txt