Analyst predicts cooler housing market

Analyst predicts cooler housing market: "WASHINGTON -- Oct. 20, 2005 --Mark Zandi, Economy.com's chief economist, said Wednesday that even though the numbers are holding up, the end of the housing boom may be just around the corner.

Zandi, speaking at the National Association of Home Builders (NAHB) conference in Washington, D.C., said that rebuilding damaged and destroyed housing in the Gulf Coast states in the wake of Hurricane Katrina could delay the slowdown for as much as a year, but such factors as projected higher long-term interest rates could result in a market decline starting in 2007.

Among the 'juiced-up' markets that Zandi said will weaken first are South Florida; the Washington, D.C., metro area; Boston; Los Angeles; and San Francisco. In addition, he said Chicago and other major midwestern cities face overbuilding and that construction has clearly outpaced need in those markets. By contrast, there's no overbuilding happening in California or Florida because demand remains strong.

South Floridians also seem to be headed upstate. Zandi said that in 2004, more than 10,000 moved from Miami to Lakeland, Jacksonville, Titusville and Port St. Lucie for more affordable housing.

Source: South Florida Sun-Sentinel (10/20/05) Shreve, Meg"