If you've been wondering whether to buy or sell in 2005, you won't go wrong either way. Leading housing economists suggest that 2005 will go on record as the second highest year for sales since 1972.

That's the year total housing starts -- multifamily and single-family -- reached 2.36 million units, and the year that today's average homebuyer was born.

Would you like to know what's changed for homebuyers over the last three decades? For one thing -- the ability to get credit. In 1972, conservative lenders were extremely reluctant to give a single woman a loan to buy a home without a co-signer. In fact, women used co-signers to get credit cards and married women were not issued credit cards in their names without their husbands' signature! Today women not only outnumber men, but single women make up 18 percent of the homebuying market!

You've come a long way, baby!

In addition, loan products have changed. The 20 percent down payments required by mortgage lenders in 1972 seem antiquated in today's market where zero down, interest only, and adjustable rate loans are gaining in popularity. The reason? Homebuyers have changed, too. They are more nomadic than ever. Today's homebuyer stays put only about 5.2 years, making 30-year fixed-rate mortgages too expensive for many.

So for those of you who are wondering if real estate is in a bubble, keep in mind that one of the reasons for the expansive housing market is opportunity. More people are able to buy homes today than in 1972 because lending standards have relaxed and homebuyers are more plentiful.

Both new homes and existing homes are likely to beat past records this year.

According to the Commerce Department, June housing construction starts were down 2.5 percent, but building permits increased by about the same amount, meaning future construction will be on track to reach an annualized rate of 1.649 million new homes.

That's a record year for single-family new home construction.

Existing homes -- those homes that have been titled to at least one owner will also beat last year's record if sales can reach the 6.97 million homes that the National Association of Realtors predicts.

David Lereah, NAR’s chief economist, says, "The housing expansion is continuing. Earlier this year, we expected 2005 home sales to be the second-highest on record, but monthly sales have been at or close to record levels. Although we should come off of sales peaks in the months ahead, mortgage interest rates have remained lower than expected, and job gains are providing additional stimulus, meaning unprecedented sales totals this year."

Lereah says that there is still a national shortage of homes available for sale, which is being exacerbated by shortages of some building materials, and that can impact prices. He expects the national median existing-home price for all housing types to rise 9.4 percent this year to $202,600. The typical new-home price will increase 5.8 percent to $233,900.

So with prices continuing to go up, Realty Times recommends that buyers don't sit on the sidelines.

Grab your piece of the American Dream now.

Published: July 25, 2005

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.