Realtors Should Remain Optimistic

While Realtors are often criticized for being too optimistic about the housing market, there were challenges described Wednesday that dimmed the otherwise rosy 2013 forecast.

Another recession looms if the fiscal cliff isn't dealt with, Duncan said.

Continued tight lending standards will stifle sales, especially to first-time homebuyers.

If the mortgage debt forgiveness act isn't renewed, people may choose a lengthy foreclosure over a short sale that will require them to count the forgiven debt as income on their taxes, said Florida Realtors Chief Economist John Tuccillo.

"Overall, 2012 will be a better year than 2011 which was a better year than 2010," Tuccillo said. "And we think that 2013 will be better than 2012 with perhaps some wild cards out there."

About 40 members of the Florida Realtors attended the conference at the group's Orlando headquarters, with county level Realtor groups tuning in by webcast. Speakers included Fannie Mae's Duncan, Pat Reass, a Florida certified real estate appraiser, California Association of Realtors Chief Economist Leslie Appleton-Young and Tuccillo.

Foreclosures And Recovery Market

Still, the foreclosure forecast nationally improved in November. Nationwide, activity was down 19 percent from last year with the number of homes entering the foreclosure process at a 71-month low.

At the same time, Florida saw a 20 percent increase in overall foreclosure activity from last year with the number of homes entering foreclosure jumping 7 percent.

In Palm Beach County, new filings were up just .25 percent from last year, according to Palm Beach County Clerk and Comptroller Sharon Bock, who said November is traditionally a slow month for new foreclosures with filings typically rising again in December.

Florida also had seven of the top 10 metropolitan regions nationally with the highest foreclosure activity, including Palm Bay, Ocala, Jacksonville, South Florida, which includes Palm Beach County, Sarasota, Port St. Lucie and Gainesville.

Foreclosure activity is tied with home prices because an increase in distressed homes on the market can push down prices. That's one of Florida's biggest unknowns - the large so-called shadow inventory that includes hundreds of thousands of foreclosures in the court system and an unknown number held by lenders that haven't been put on the market yet.