Between the first quarter of 2005 and the first quarter of this year, the price index for existing homes sold in repeat transactions increased 10 percent - a solid gain but down a bit from the record pace for the period mid-2004 to mid-2005. Focusing on the first quarter of 2006 alone, prices increased at an annual rate of 7.3 percent.
However, quarterly figures should be treated with a good degree of caution given the volatility of this data series. Given the slowing conditions in the housing market, spending for the construction of new housing is unlikely to be an important direct source of overall GDP growth this year, after having contributed close to ½ percentage point last year.