The copyright to this article is owned by the FLORIDA ASSOCIATION OF REALTORS as noted below.   I make no claim as to ownership or authorship of this material.  It is simply provided to help educate my customers, and it may have been excerpted.  Articles and/or excerpts presented here do not necessarily reflect my opinion or that of Coldwell Banker Residential Real Estate.

Have a question about anything at all related to Fort Lauderdale real estate?  Email me now for a quick response.

STUDY SAYS: MILD HOUSING RECOVERY ON THE WAY
Posted March 17, 2008

It looks like the housing market may have hit bottom, setting the stage for a mild housing recovery to begin prior to year-end 2008, according to a new study by SMR Research Corp.

(Andy's note: Since 1984, SMR has been the nation’s largest publisher of industry and market research studies on the home mortgage business, home equity lending, and other consumer loan subjects.) 

The market's recovery is likely to be gradual, with house prices merely firming up or increasing slightly, rather than returning to the strong growth seen from 2002 to mid-2006, the firm said.

An SMR study was among the first to declare (in 2002) that a housing price bubble existed, defined as prices rising faster than consumer incomes. In a 2004 study, SMR forecast that a "perfect storm" in credit quality would cause an explosion in foreclosures within two years.

SMR specializes in mortgage and home equity loan industry research. "Our prior forecasts were accurate but widely disbelieved when issued," says SMR President Stuart A. Feldstein. "We similarly expect a skeptical reaction now to a recovery forecast, which is not the common view. But the numbers are what they are."

The new recovery forecast was published within SMR's annual spring study. "Homes are now affordable again," Feldstein says. "Consumer psychology is the biggest remaining hurdle to recovery."

© 2008 FLORIDA ASSOCIATION OF REALTORS