alberto_saen…, Home Buyer in Louisville, KY

Merely on the housing price subject, what kind of evaluations can an investor expect to see in the next 2 years?

Asked by alberto_saenz_2, Louisville, KY Tue Nov 13, 2012

Seeing it from a percentage change

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My best estimate is to project a 2% improvement in prices in 2013 and 3%improvement in 2014. This will vary be neighborhood.
0 votes Thank Flag Link Sun Nov 25, 2012
Take a look at 2 recent blogs I've written on that topic:……

It is interesting to note that there are really 2 separate and distinct markets residing side by side in the same market place: the distressed market (repos and short sales) and the regular market. You can expect to pay in Louisville around 10 - 15% less for a distressed property. 35%b of Realtors interviewed recently by the National Association of Realtors reported that they had experienced an under evaluation of a home in the last 3 months.
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0 votes Thank Flag Link Tue Nov 13, 2012
During the next few years, the values of single family homes will rise or fall, depending upon the direction of the economy. The economy may fall back into recession If the feds fail to reach an agreement on the fiscal cliff and punt on reforming our loophole based tax structure, which includes high corporate rates, relative to other competing countries. If these issues aren't addressed along with some type of medicare, social security, etc fixes, prices will likely decline due to a lack of demand. I make this assertion based on our drastic need for more full time jobs. The more jobs that are created, the more everyone will be able to reduce their debt loads and thereby qualify for mortgages. However, if the feds successfully work out their differences and address these pressing issues, prices may likely rise. More jobs means more money to invest in a home. There are lots of potential homebuyers sitting on the sidelines, as they can't qualify for a mortgage, due to the loss of a job or excessive debt. The lenders have also raised their standards. However, please understand that once the economy improves it will likely push up interest rates... Good luck.
0 votes Thank Flag Link Tue Nov 13, 2012
You can expect to see an endless range of evaluations from different people over the next two years. Some people might say housing should go down, and some up. It's impossible to say what the percentage change each evaluation would be.

It's my evaluation that the primary markets along the coastal cities will continue to lead the rebound with another 10-20% of gains over the next two years. Much of that is driven by foreign interest and monetary stimulus. As we go into secondary and tertiary markets or just away from the coasts, I see gains being more subdued, probably in the 0-10% range as interest drops in those properties and fewer buyers can qualify for loans to take advantage of the stimulus.

Of course, there are always going to be pockets that jump far away from that range. Just watch any oil or coal producing area.
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0 votes Thank Flag Link Tue Nov 13, 2012
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