Home Buying in 11758>Question Details

LI_Buyer, Home Buyer in 11501

How can you project what a home will be worth in 5 years. I am looking to buy at "The Seasons at

Asked by LI_Buyer, 11501 Wed Sep 2, 2009

Massapequa." I am looking to buy at "The Seasons at Massapequa" and I would like to know what the projected value of my home would be in 5 years. Is there a standard metric for predicting this?

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Answers

2
No one can answer that question with all the variables involved. Home ownership has always been one of the best long term investments possible.
0 votes Thank Flag Link Fri Apr 27, 2012
There is no way to tell for sure due to the many market fluctuions that have a bearing on values. Real Estate is not like buying a bond that will give you a defined return over a certain time frame. Just look at what has happened to values over the past few years. This area has seen values drop from 2006 to present. But if you look at 2003-2006 values climbed. Lets explore what influences these changes. It’s the economics of Supply and Demand. In 2003-2005 there was little supply of homes on the market. Demand was high because the economy was strong and Banks made it easier for buyers to get loans. We had an environment where there were several buyers for each home and that causes buyers to bid prices up. Now if you look at what we just went thru. Banks changed how you Qualify for a loan. You were required to have a higher Fica score and more money down in many cases. This along with the change in the economy reduced the demand for homes. At the same time inventory increased as sellers walked away from homes they could no longer afford. The balance of supply and demand changed. To answer your question is not something that can be done because no one knows what the future will hold for market short term. Long term 10 years or more Real Estate has always gone up. That’s why Real Estate is not a short term investment its simply your home a place to hang your hat.
I hope this helps you with your question.

John Ford
Manager/Broker
Century 21 Prevete
616 Broadway
Massapequa, NY
516-795-7000
0 votes Thank Flag Link Sat Oct 24, 2009
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