After each cycle the properties appreciate.
Look at the Market that your interested in and check out the sales activities perhaps that area is already improving.Every region will be different.
Johnstone and Johnstone-
Have you sold your home in Lafayette? If not, now is the time! Inventory is down 49% in our county and if the home is priced well, most sellers are getting multiple offers. For all practical purposes, it's a sellers market in Contra Costa County! Forget about phantom inventory, get your home on the market and enjoy this window of opportunity!
My best advice for you is to contact a local real estate professional so that you can tap into their local knowledge and their expertise. Take a listen as they express their profesional opinion, but know that it is only an opinion. Rest assured that even they can't answer this million dollar question.
I think it is location and time specific. Everytime I think we have bottomed out, I see a new sale at under market. Then, everytime it appears we are still dipping, an investor grabs a distressed property at over asking.
I think we are in a long term volatile market where location and timing dictates the outcome. I believe a minimum of 5 years to begin to see equity in properties purchased in today's market.
I think we will start to see an improvement in around 3-4 years in the East Bay, possibly sooner in San Francisco and the South Bay, but places like Stockton, for example have a long way to go yet.
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - firstname.lastname@example.org
I tend to agree with Terry and feel that "short sales" will be around for a very long time unless lenders can find creative ways to help owners deal with erroding home equity issues.
When will true recovery begin? Many feel that in some location that it is happening right now.... Inventory is decreasing, prices are stabilizing, and distressed numbers are decreasing. These are all good signs that are an indication of promising things.