The winning combination of low interest rates, strong home price appreciation, and moderate job growth that drove record-setting home sales last year will continue to fuel the home-sales market this year. Meanwhile, practitioners will be gearing up for a solid revival in the commercial arena.

Home price appreciation figures mask a country growing increasingly divided between households enjoying strong appreciation gains and those largely without. That division tells us how communities are faring in the competition for jobs and, by extension, how robust their home sales markets will be in the years ahead.

Interest rates are rising as the economy grows and the Federal Reserve seeks to keep inflation at bay. But does that mean home prices will head south?

After several tough years for commercial real estate, prospects are looking up as absorption and vacancy rates across property types improve along with the economy.

With the surge in NAR membership over the past several years, can the level of home sales going forward support an industry with 1 million professionals?

For real estate, that most local of industries, the impact of offshoring is being felt largely in mortgage lending. But the next target may be the increasingly automated transaction management process that’s largely the domain of real estate brokers, independent contractors, and title companies.

The economy is growing, mortgage rates remain low, and demographic trends continue to be favorable as baby boomers and immigrants purchase homes in strong numbers. So look for housing to remain solid for 2004. But let’s be prudent planners and keep our eyes on four economic trends.

With 2003 shaping up to be yet another stellar year for residential sales, it’s fair to ask if business can get any better in 2004, especially with the prospect of interest rates inching up as the U.S. economy gains momentum.

With mortgage rates rising, the question now isn’t whether sales will ease but by how much.

The way some analysts keep looking for signs of a housing bubble, they must believe the laws of supply and demand have been revoked. But, a healthy housing market and rising home prices aren’t incompatible.

On any number of accounts, the U.S. economy remains sluggish. Unemployment is up, consumer confidence is down, and the rate of economic growth remains tepid. In the first quarter of this year, growth was about 2 percent. But housing remains well-positioned, thanks in part to low interest rates and continuing sound asset appreciation.