Home sales in the year to come should generally level-out and remain at historically high levels, according to the National Association of Realtors®.

David Lereah, NAR chief economist, reports, "Home sales will move up and down somewhat over the remainder of the year, but stay at a high plateau, meaning this will be the third strongest year on record." The 30-year fixed-rate mortgage is expected to rise to 6.9 percent by the end of the year.

NAR continues, "Existing-home sales are projected to drop 6.0 percent to 6.65 million this year from a record 7.08 million in 2005. New-home sales are likely fall 10.9 percent to 1.14 million from the record 1.28 million last year -- both sectors would see the third best year following 2005 and 2004."

Buyers and sellers should expect the national average for homes to be $221,700. New homes cost only slightly more on average -- at the price of $242,700.

In Sedona, Arizona, we see just this predicted trend already occurring -- housing sales are down, while prices are up.

One expert reports, "In the Sedona market the number of homes sold has dropped, but the median price has risen from $542,000 to $557,000. The days on the market has changed very little."

As the number of homes leaving the market slow -- the inventory of homes for sale continues to grow -- something that generally indicates a market will soon enter a strong buyers favor. The market is currently neutral.

And with Sedona being named one the United States' most beautiful cities -- buyers are sure to come in droves to this home of only 10,000.

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