Certainly no one wants to see price adjustments dipping into negative territory—as they already are for condos in many markets that were seeing boom times a year ago—but we need cooling prices today to give buyers a chance to get back into the market.

The Federal Reserve faces a daunting task over the next several months as it tries to keep inflation at bay without pulling the rug out from under our economy’s pillar of strength over the last several years, home ownership.

While economists appear to have breathed a sigh of relief at the Federal Reserve's possible pause in raising short term interest rates, inflation could reignite with an uptick in jobs. But don’t panic — a strong job market is a good thing for housing.

The latest housing and business indicators for the real estate market.

Is real estate brokerage a financial or a commercial activity? The importance of this question was highlighted once again when the U.S. Office of the Comptroller of the Currency released its letters permitting Bank of America to build a hotel, PNC Bank to build a mixed-use project, and Union Bank to take an equity position in a wind energy facility.

After five years of being the primary engine for economic growth in the United States, the housing sector is likely to move to the back burner and could actually contribute to a slowing in economic activity this year.

The United States economy has displayed a powerful resiliency over the last several years, with home sales hitting records and commercial activity reaching robust levels despite a steady stream of big shocks like hurricanes Katrina and Rita. That same resiliency will keep real estate activity strong in 2006.

Hurricanes Katrina and Rita have made an economic dent that’s pushing far outside the Gulf Coast area, but the U.S. economy will weather the storms surprisingly well.

Lawmakers tend to become concerned with competitiveness when an industry consolidates and the number of companies servicing customers shrinks. That’s why talk in Congress about the level of competitiveness in residential real estate is as puzzling as can be.

It’s good sense to keep a steady eye on trouble spots. But the bottom line for housing remains good. The economy is growing, people are working, financing costs are low, and demand remains high.

There’s little reason to fear our great housing boom is ending. We’ve been anticipating a slowing in housing activity for a while, and it’s welcome news.