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And regardless of how amusing Jack thinks the statement is, the value of your home will eventually rebound.
There's every chance that won't happen in our lifetimes, and even if the appraisal improves over the next ten years or so, it may be with dollars so inflated as to render the property worth much less in real terms than it is today.
Well, I'm already seeing property values starting to pick back up, at least here in Florida. It's still a buyers market, but the good deals are starting to get harder to find. The great thing about real estate is that 1) it's a fixed resource and 2) as the population increases, so does the demand for housing.
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The market got overly heated for a bit there and needed this 'adjustment' to get things back to normal.
In fact, the market has been overheated for many years, and what we're seeing is not merely a correction that will soon resume its upward trend. Rather, it is a correction on the heels of a downward trend, and that trend would have been visible and obvious at least ten years ago if not for credit policies that conveyed loans to ever-less-qualified borrowers.
For years, the average home appreciation was somewhere between 5-10% depending on location (1980 nationwide average was 6.1%). It wasn't until a few years ago that they jumped off the charts, peaking around the first quarter of 2006. Those were great times, and I was flipping foreclosed homes faster than I could buy them and for stupid amounts of profit. The trend may be downward currently, however if you track the market over the past several decades, the overall trend is upward and always has been. The current situation is no different, and it creates a great opportunity to pick up some fantastic properties at below market value.
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Hang in there and just keep doing what you are doing.
I agree with this, but no one should think residential property (with extremely rare exceptions) is still an investment in the future. It is now merely an expenditure, and the reasons for buying and paying off must be considered in that light.
I highly disagree. Real estate has been and will continue to be one of the most solid investments you can make if you make rational decisions on what to buy and when.
Cheers,
Brad
To be old and wise, you must first be young and stupid.
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