Most Frequent Question Asked???
Perhaps but most often stated in the news in the reverse "Home prices continue to be depressed due to foreclosures and short sales"
Contrary thinking?? You ask. Such a contradiction to the question at hand? No!!
Home prices in 2006 and 2007 over accelerated in most markets just as internet stocks did a few years ago. Over the past two years(and expected to continue until approx 2012....best guess), home prices have been adjusting toward historical trends of price appreciation.
If a home was purchased for $200,000 in 2000 and appreciated at the historical 3-5%/year rate, we would see that the value of the home would be approximately $320,000 in 2012.
If that same home was purchased at the peak value in 2006/Early 2007 after the rapid rise in
the local Hampton Roads area, the purchase price would have been approx. $448,000.
Thus as you can see,the variance of $124,000 in values is due to the excessive acceleration of
values versus to the historical trend.
One can predict fairly well that the current softness in home prices will end sometime in 2012 as the
present downward trend of prices will coincide with the historical trend.
At this point, home values should again begin to increase in value!!!!!!
So buy today with great opportunity to increasein values in the future....if upside down now,
the pain will not end....so stay steady....the challenge will heal itself.