The Harder They Fall

The bigger and faster the run up in prices, the bigger and faster the fall observes Linda Rawls of the Palm Beach post. What's true in Palm Beach is also true in Destin - big run up, big fall.

How well will homes sell? Opinions differ on market for new homes

The faster they rise, the harder they fall. That old saw aptly applies to new-home prices, and so it is that Palm Beach County and the Treasure Coast - two of the hottest housing markets in the nation - are now leading the retreat from a boom that saw sales skyrocket and prices soar for five consecutive record-setting years. Whether or not it's a hard fall, though, depends on whom you talk to.

"The current downturn should last two to five years," housing analyst Jack McCabe says. Bradley Hunter of Metrostudy says new-home sales will pick up in 18 months. The National Association of Home Builders says new-home prices will drop until at least 2008. David Berson of Fannie Mae says prices will perk up in 2009. And Mark Zandi of Moody's Economy.com says the worst of the downturn "is at hand."