Every s often the real estate market cycles.
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!
Unfortunately there is no crystal ball that would allow anyone to answer this question with any level of certainty. One area of the country can be vastly different from another area. For example, where I live (Montgomery County Maryland) tends to have a much more stable economy than elsewhere across our country and the real estate market is directly impacted by the health of the economy. I often counsel individuals to listen only to their 'local' real estate news and to turn-off any 'national' real estate news.
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 the question is "where?" as much as "when?". Based on past history, the more affluent areas will recover before the poorer ones. And yes, there may well be more short sales and foreclosures to come for a while yet.
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.
Frankly, I think there is going to be a new generation of short sales and distressed sales, because I am seeing many people who have been trying to hang in there, but are running out of resources and had their credit limits cut and don't have access to the current low interest rate re-fi's because they don't have that 20% equity in their house to qualify. There was talk of some new home owner re-fi plans and hopefully something like that might revive the housing market.