In 2008, when the housing bubble burst and the world economy began to tank, many economists and housing experts at the time said 2011 was when things would likely get back to normal. The more negative of the lot put a return to market normalcy at 2012.
Nowadays, getting to a normal housing market by 2012 might be considered wishful thinking.
Vandell, dean's professor of finance and director of the Center for Real Estate at UCI's Paul Merage School of Business, believes the market will finally stabilize and homes will again begin to appreciate in value sometime around 2014.
"I don't see any movement toward significant appreciation until the market comes into balance, and I don't see that for another two or three years or so," Vandell said.
But Vandell's forecast is not all bad.
"I don't think there's going to be a lot more downside," he added.
In fact, it wasn't all bad news this week on the housing front. A report on Tuesday — the S&P/Case-Shiller home price index of major cities — shows prices in July climbed for the fourth month in a row. Prices rose 0.9% in July compared with June, but they're still 4.1% lower than a year ago.
"With July's data we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices," David M. Blitzer, chairman of the index committee at S&P Indices, said in a statement.
In his statement, Blitzer added: "While we have now seen four consecutive months of generally increasing prices, we do know that we are still far from a sustained recovery."
Housing market problem No. 1, in Vandell's estimation: supply and demand.
"We have an excess supply situation," Vandell said.
In short, there are more sellers than buyers. And part of that problem is many people can't qualify for a loan, Vandell added.