Market could flatten soon, observers say

Market could flatten soon, observers say: "MIAMI -- Aug. 22, 2005 -- A number of economists believe the increased popularity of interest-only loans and other innovative mortgage products suggests that the national housing market is peaking.

They also cite a new report from the National Association of Realtors� (NAR) that says national housing affordability is at its lowest level since 1991.

NAR expects the home-price appreciation rate to drop by half next year. Additionally, the group reports that homes are languishing on the market longer than in the past, and inventory is on the rise.

In South Florida, however, experts do not anticipate such a slowdown. The region is becoming more expensive, but demand from foreign investors, second-home buyers and residents from other states has depleted the inventory of for-sale properties. As a result, the Florida Association of Realtors says second-quarter resales slipped 18 percent in Broward County and 13 percent in Palm Beach County from the corresponding period in 2004.

'We're not seeing a slowdown at all, but if we did it wouldn't affect us in the near term because we can't handle all of the demand we've got now,' explains Alan Levan, chief executive of Fort Lauderdale-based Levitt Corp."