If you purchased in 2007 a home that you loved and that you wanted to live in for the next 20 or 30 years, then be asured it will eventually recover an surpass what you paid for it. If you bought with the intention on keeping it for 5 years and then moving on then start concidering a short-sale.
Like any investment in the stock market, you don't really incur a loss unless you sell when the market is low. Holding on is not a loss.
Charles Rutenberg Realty
If the house appreciate at a rate of 6% per year, it will take 12 years for the current value to double.
Naturally, if we only get 5%, it will take longer.
That said, what are we going to get over the next 4-8 years?
8 years from now, you can come back to me and say: "You said we were going to average 7%; you idiot!"
Good luck and may God bless
Some say the reason inventory is down and foreclosures are down is the "Rocket Docket " mill of Lee county as been slowed down. One can not foreclosure if you can't not get the action through the courts.
Fact remains, for people to move to Florida, they must first sell their current property, and have enough to buy in Florida, and have interest rate affordable to do so. For Florida 50% drop (or more) to recover 100% in 4 to 8 years ? ? ? ? given the uncertainty's . . . . I would bet against it.
In the long term, given return to some normalcy in government, long term meaning 20 year and out, we should recover to 2006 prices. This would be a little over the 3% increase in value homes has experienced in the past 100 years or so. To have a 12% growth rate as some suggest - 4 times historical rates . .. I never bet against history.
While nobody can tell with 100% certainty what the future will hold there is no doubt in my mind that we will see home values increase in Florida well beyond the most recent nights we saw in 2005/2006. The real estate market is alive and kicking in southeast Florida with a lack of inventory our largest current problem.
Interest rates are at all time lows, foreclosures in Palm Beach County are down nearly 50% and while there are certainly bumps in the road ahead the forces of increased demand like 700,000 baby boomers looking or a Florida home each year for the next 29 years and the inflationary pressures we are already feeling tell me that higher prices are coming your way.
Keep in mind that many properties being purchased in Florida are at prices well below replacement value and long term that is a trend that cannot continue for obvious reasons. We who enjoy the Florida lifestyle know there is no better so hang in there and at some point your home value will recover.
I hope this information is helpful but if you need anything additional do not hesitate to give me a call.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
There two kinds of Economist,
the First is the Economist that knows he can not predict the future.
The Second is the Economist that does know he can not predict the future.
Same might be said of Realtors.
Given the current actions of the Fed, the reliance on 1930's failed policy's, QE3???? -we look to
limp along until they go to supply side econ. Laffer curve ( http://www.youtube.com/watch?v=fIqyCpCPrvU ) works every time it has been tried.
Good signs we are a double dip an recovery from a double dip is not liky to be V shaped but more
\___.___/. With the exception of runaway inflation, which is possible , but were you recover the dollars,but not the value of the dollars, most likly is that yourvalue will continue to fall, be it at a reduced rate for some years, the a slow return to the 3 to 4 % increase in value home have been increasing for the past decades.
I find myself firmly in agreement with Tony.
Hope you enjoyed that!
Debbie Albert, PA
Keller Williams Treasure Coast
Inflation is always on the rise, so prices with time are bound to go up for sure.