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Housing Market Won’t Recover Until Unemployment Falls Below 7%: Miller Samuel CEO

…But Jonathan Miler, CEO of real estate appraisal firm Miller Samuel, says the housing market has not recovered yet.

The rebound in housing “is based on nothing,” says Miller.“Incomes are flat, credit is tight and unemployment and underemployment are unacceptably high,” Miller says in the attached clip. “Yet housing prices nationally are rising in excess of 12%.”…

…Investors have been big buyers of foreclosed homes, but Miller expects those sales will slow.

Looking ahead, Miller says the current “breakneck pace” of home sales overall will decline as interest rates rise, which is expected as the Fed reduces its aggressive easing policies. But contrary to conventional wisdom, Miller says rising rates are not necessarily bad for this housing market.

“Higher rates will reduce froth in the market which makes the rise in housing prices more sustainable,” says Miller, adding that it will knock about 7% to 8% of potential buyers off the market….

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