No one knows for certain where the bottom of the real-estate downturn is, but key housing reports have hinted in recent weeks that the 2-year-old free fall in prices may be leveling off.

"The latest quarterly reports of positive appreciation or losses close to zero reinforce the possibility that the losses are at or near the end," University of Central Florida finance professor Stanley D. Smith reported recently after studying market measures for the Mortgage Bankers Association of Central Florida.

"The latest quarterly reports are a glimmer of hope."

Forces that appear to be helping the market include historically low mortgage rates, price declines that have made homes more affordable, and predictions from some forecasters that the nation's recession will end this year. But a new wave of job cuts announced Thursday stoked fears the recession will linger.

Economic concerns still prevail, though, Smith noted. Rising unemployment rates, continuing foreclosures and tightened lending standards could slow housing's recovery, he said.

Carol Fogelsong, president of the national Property Records Industry Association, said she thinks area prices will continue to fall for 10 to 12 more months.

"If we were on top of the bell curve in 2004 and '05, we're not down in the valley yet," said Fogelsong, assistant comptroller for records in the Orange County Comptroller's Office.

What do you think??