chesapeakesim

Hi Simpleman, from what you said you bought for $215K and can sell for $420K, so you made a profit of $205K in 6 years (minus selling expenses, time value of money, etc). I am not sure why you are worried, many people would love to be in your position. Housing prices are falling cause they never should have been this high to begin with and people are now realizing that without exotic mortgages and the belief that they can buy whatever and sell in 2 years and make a ton of money, they really should not be paying that much. It doesn't matter if construction costs rise, inflation rises, etc., people can and will not buy homes that are out of their price range. In general, home prices are based on income, average income in Hampton Roads is $65K and the general rule is housing price should be 3 times income, so that average price should be $195K. That is roughly where your house was back in 02 and probably where it should have been assuming your house is nicer than the average. Now at $420K you have priced most buyers out of the price range. People used to pay that much cause they could do interest only loans, or they thought, "hey I can afford this for two years, then I will sell it for $600K and make $180K", those days are gone. I am no real estate expert, but I can't see how prices can appreciate over the next 18 months. I really see them dropping in the next 18 months so I would sell now if you are comfortable renting.

But all in all, you made over $200K in 6 years just for living in your place. You should be extremely happy and not worry so much :). Good luck though! - Sat Jun 7 2008, 09:33