The Real Deal Miami

In climate of good news, some argue housing crisis will continue

September 02, 2009 06:18PM

The shortage of good news in the housing market seems to have faded — Toll Brothers, K. Hovnanian and KB Home, among other large U.S. builders, have seen their share values spike, while figures on home starts have climbed for the last five months consecutively, according to CNN Money. Even California, which was one of the states hit hardest by the housing crisis, has seen its home prices climb. But some financial analysts, such as real estate researcher Mark Hanson, founder and managing director at Mark Hanson Advisors, believe that this current housing climate is not a recovery, but the calm before the storm. Hanson argues that the crisis was one created over a decade of bad credit decisions and that solving that situation will take far longer than people expect. “We’re entering the phase where the homeowner has to earn his way out of this mess,” Hanson said. “This summer is shaping up as the gateway into the next move down.”