Below is a price prediction site for this year.
No one really knows what will happen to prices in 7 years. They could go down and stay down. They could remain the same. They could go up.
We do have a lot of foreclosures coming (maybe not near you but check it out). Those foreclosures will be coming through 2012. It could be a year or more to get them all taken care of. That leads to 2013. That means if the economy recovers, and people actually have jobs (low unemployment) prices could rise. Yet if unemployment remains high for several years that could really hurt house prices.
I feel Chris answered it best, there is no one with a crystal ball to determine when the values will finally stablize, I can tell you we wish there was a magical way to tell. We've seen this downward trend since 2006, and although it has begun to stablize there are factors coming into play this year that may effect the market again, such as 2005 adjustable rate resets, Wall St., Interest rates, and if theTax credit incentive will be extended. These are just some of the factors that can make or break the market as we see it today. We are seeing more movement in sales especially under $300k and the luxury market is also getting more lookers than we saw last year. Let me also answer your question another way too, if the property was purchased prior to 2003, you have already seen the highest value on it, but you should still have decent equity on the property as long as you have not taken it all out in an equity mortgage. Looking ahead, if you purchased prior to 2003 as mentioned you should have more equity, if you purchased between 2004-2006 you could have lost up to 35% of value since that time. Let's assume you lost $100,000, and the market turns around tomorrow and we begin to see 1 to 2% appreciation per year, it could take anywhere from 5 -10 years before the property is worth what it was purchased for. Note this is all just for information and may not pertain to you individual situation and that Milford is very diverse in its market area, if you are on the water your house has probably not lost as much value as say a house in north Milford. I hope this info helps.
Anthony- On the internet people will tell you anything you want to hear, especially on this site- trulia. Imagine if you will a bunch of traveling fortune tellers (let's call them realtors) as they look into there "trulia internet crystal balls of real estate" and see many things- your imaginary reading might go something like this.
"Ah, greetings friend, the home selling spirits are with us today, yes, yes I see values, values rising in Milford! Oh my, I can see they are increasing over the next four to seven years- hurry- go now, take my card and call me when youâ€™re ready to sell!â€
Any realtor that can accurately tell you the outlook over the next 4 to 7 years in this town with regards to values would be doing nothing more than speculating and a word that starts with L and rhymes with crying. Many people, far more educated than local realtors, never even remotely predicted the economic crisis in America as it is to this current day so to me I see the real question as, "Who can I trust?"
If you look at the numbers historically since the 1950's over a ten year periods real estate is still a steady gainer with dips only in the late 80's and early 90's- however, the current state of affairs is unlike and recession we have had before and if banks continue to falter and mismanagement happens on every level of government, wall street and "main street" as it's been coined values may be no better than they are now or even worse in four to seven years.
Do I hope home values increase? - YES. Will we all benefit from real estate resurgence? YES. Are things busy in this town right now? YES. Are there lots of well qualified buyers right now? YES I feel there will always be a need for people to buy and sell homes in any market- values are variable we simply can not predict.
Lastly, I am always sorry to hear about divorce- as agents people always come to us in times of change. Putting our clients first means giving them the answers THEY need, not the one's WE need. What is best for you IS infact best for me if I am a good agent. With that being said my simple answer or advice: sell now because the future is an unknown quantity. Best wishes and I hope I got you to laugh a little.
It is unclear when the market will hit bottom, when it will turn, and how long it will take to reach current values when it does. If you wait 4-7 years, your home may still be worth the same amount it is worth today, and you will have lost the use of the money raised from the sale of the home. It also prolongs your financial involvement with your ex-spouse. If you need to sell your home due to an upcoming divorce, I'd suggest getting it listed for sale as soon as possible, before the spring market rush.
Depending on the location of your home, it may be more desirable to hold onto the property and rent it. There are few 4-bedroom homes for rent in Milford, and a rental of this size could command a good amount of money. This would also allow you time to settle up your estate. But if you and your ex are ready to sell, I would not hesitate to put your home on the market. Many things can happen in 4-7 years time, and you can only accurately predict what a home is worth today.
Please contact me with any other questions. I'm a full time agent on the CT Shoreline and have experience with estate & forced sales.
Page Taft Real Estate