We expect that prices for certain commodities like cement, asphalt, PVC pipes and labor to continue to increase, and that contractors will make sure they put that price increase in their bids. It's a guessing game.

We expect this trend to continue during 2006 as house prices rise at a slower pace than earnings, therefore making it a little easier for first-time buyers to enter the market.

The exchangeable value of all commodities, rises as the difficulties of their production increase.

It's not a coincidence that commodities prices are increasing simultaneously with capacity utilization.

The annual percentage increase in house prices nationally in 2005 was the smallest for 10 years.

Since then we have seen a gradual increase until prices are now equal to a month ago. We expect prices to continue higher during the spring, but the rate of increase depends on the amount of speculation that occurs.