Mortgage : Home Loans : Refinance : Home Equity Loans

By Ma. Roma Agsalud

What do analysts in South Florida predict about its housing slump? Well, they say it is far from over.

According to the National Association of Realtors, the worst part of the U.S. housing setback is over but others are doubtful. The Realtors group said that the annual growth rate of sales of existing U.S. homes will be 6.29 million in the first quarter, erasing the five consecutive quarterly drops. About 15 percent of new home sales will recover during the fourth quarter of year 2007 wherein transactions is targeted to grow at an annual rate of 967,000 after dropping to 944,000 in the third quarter, the Realtors said further.

The spring season is going to be crucial in determining when it begins but the consensus shows that the recovery will be the year 2007, according to Todd Vencil, an analyst at BB&T Capital Markets in Richmond, Virginia.

Toll Brothers, a luxury home builder, said last week that housing demand may pick up next year except for Palm Beach and Broward counties, according to some experts.

Analyst Mike Larson of Weiss Research in Jupiter said he expects people to put their homes back on the market after the holidays which could add more glut even with the stabilization of mortgage rates and the number of homes for sale.

In view of the above, prices will continue to decline. Larson said further that a peak in supply and bottoming prices will contribute to a still weak 2007 market.

Brad Hunter, West Palm Beach housing analyst said that those investors who bought at the height of the 2005 boom might sell at a loss in which case more sales will occur, thereby this might contribute to the rebound of the South Florida market. But people are stubborn, he said.

March to June is the spring selling season where more than half of all U.S. home resales occur whereas the busiest time for new home markets starts in February. Building a typical house last for six months and most families want to move in September just bef!
ore the
school year starts.

Fannie Mae, the largest mortgage buyer expects home resales to gain in 2008

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