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A real estate recovery in 2013

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AUSTIN, Texas -- At least the real estate industry has 2013 to look forward to. Continuing foreclosures and an "overhang" in housing inventory will likely prolong the housing slump for several more years, said economists who spoke Friday during an annual meeting of the National Association of Real Estate Editors. While home sales likely reached the bottom of the current cycle last year, home values in many markets are still in decline, said Stan Humphries, chief economist for online real estate search and information company Zillow. "The housing recession is not over: Housing prices continue to fall," Humphries said. And housing demand may not see a normal balance with new household formation and housing starts until 2013, said Doug Duncan, chief economist for secondary mortgage giant Fannie Mae. The "overhang or shadow supply" of housing inventory has a lot to do with the drawn-out recovery for the housing market, he noted. Home and rental u...