Slower housing price gains and higher interest rates are contributing to a slowdown in the housing market. Experts forecast growth in the upcoming year, though not at the torrid pace of the last few years.

Bloomberg News:

Higher home prices and borrowing costs will curtail demand this year, according to real estate industry forecasts. Demand for refinancing and home equity loans, which have driven consumer spending and boosted economic growth, may also fade. Federal Reserve Bank of St. Louis President William Poole said business investment will begin to replace housing as an engine of growth.

Today's data shows existing home sales at a two year low for December, falling by 5.7%, though houses up for sale rose slightly. This scenario of more houses on the market and lower sales dovetails with predicitions of a cooling real estate market, and transition to a buyer's market from a seller's market.

New home sales figures are due from the Commerce Department on Friday.

Tags: realestate data housing homeprices rates interest