Kwest78, Home Owner in Pensacola, FL

Price of my home in Pensacola has dropped drastically since I purchased in 2007. Whats the chances of home values recovering in the next 4-8 years

Asked by Kwest78, Pensacola, FL Sat Sep 3, 2011

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There is no saying, but Real Estate has always been a cyclical commodity. Usually every 7 years there is a price adjustment. This current one has lasted the longest and has been the worst in 21 years, but the economy at large has been a contributing factor to its duration.

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.

Tony Vega
Charles Rutenberg Realty
1 vote Thank Flag Link Sat Sep 3, 2011
Here's an interest statistic for you:

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
0 votes Thank Flag Link Mon Sep 26, 2011
That is a good question and a mystery. Is your home in a good location and in good condition? These are two very important factors regardless of what the market is doing today or a few years from now. Prices will go up once this uncertainty in the economy goes away.
0 votes Thank Flag Link Mon Sep 26, 2011
I know it's discouraging to have the value of your home take a plunge since purchasing. The good news is that it is a real tangible product that you can maintain and even improve while at the same time enjoy the comforts of "home". My best advice is to keep current on your neighborhood market conditions by having a Realtor Email you a quarterly comparative market analysis as well as a listing/sales alert on up to the minute activity in your subdivision/neighborhood. Regardless if you want to sell at the first opportunity -or just know what your investment is worth. … Think of it as if you were keeping watch on your bank balance! Feel free to contact me if you would like me to provide you with this complimentary service.
0 votes Thank Flag Link Mon Sep 26, 2011
And then again, . . . . should we have some velocity in money, QE3 happens as some recommend, a ton more government investment, say to 25 Trillion in debt by 2018, interest climbs to late 1979 levels - 15% or more.
Then What???
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.
0 votes Thank Flag Link Mon Sep 5, 2011
Kwest,

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
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Mon Sep 5, 2011
In Economics, we have a saying,
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.
0 votes Thank Flag Link Sat Sep 3, 2011
I wish I had a crystal ball and could tell you the answer to that question.
0 votes Thank Flag Link Sat Sep 3, 2011
YES, absolutely! Take a look at a Blog that I wrote today. It is regarding the real estate recovery in Florida~

http://www.trulia.com/blog/debbie_albert/2011/09/low_mortgag…

Hope you enjoyed that!

Debbie Albert, PA
Keller Williams Treasure Coast
0 votes Thank Flag Link Sat Sep 3, 2011
Home values will recover eventually. However, one of the biggest rules about real estate when it comes to being a good investment is “location”, and the second is to” hold it” for a reasonable period of time.
Inflation is always on the rise, so prices with time are bound to go up for sure.
0 votes Thank Flag Link Sat Sep 3, 2011
All things considered there is a low likelihood of value coming back any time soon. If you ask the question because you need to sell just know that there are solutions for upside down sellers. Should you be in that position feel free to contact me to discuss your unique situation.
0 votes Thank Flag Link Sat Sep 3, 2011
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