Everyone now knows that market prices in 2005 were ridiculously high. What few people will agree on today is that today's market values are ridiculously low.
Well I step out and say it. They are not low in comparison to other homes recently sold and currently on the market. They are low across the region in relation to the multi-year average over the next couple of decades.
If you assume (as I do) that values are currently near the bottom and about to start rising again, and you assume an average 3% appreciation rate, the value of a $340K house, well maintained, could be projected to be $394,000 in five years in 2015, and $430,000 in 8 years in 2018.
Assign an optimistic average 5% yearly increase in value. (a common assumption for real estate promoters for decades past) and your break even approaches sooner in just five years $433,900 in 2015.
I am SURE that appreciation will not be the same percentage every year. Some years it will be above average, some years it will be below average or negative. I will bet that there will be at least one year in the next twenty when prices decline in a years time and at least one year in which the appreciation is double digits.
Sure and steady is NOT how she goes.
To sum up, I predict that at some point in time this decade, your home will once again be worth $430K.
I know this is not what you want to hear.