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Milton Ezrati of Lord AbbettThe press and the investment community have made much of the good news on housing lately. Certainly the recent upturn in sales, construction and real estate prices is welcome. But if the 1980s housing bust is any guide, popular references to the sector’s strength and imminent recovery grossly overstate the case. The 1980s experience suggests housing will recover only slowly. Residential real estate may well have turned a corner, but major gains and price recovery will likely wait for some time.

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