Question Details

Firsttimer, Home Buyer in Alexandria, VA

Percentage Off the Bubble Price?

Asked by Firsttimer, Alexandria, VA Tue Apr 15, 2008

What percentage off the 2005 price are home valued at now? Particularly in the Northern VA area? Is there any indication that prices will return to that place in the next several years (4ish)?

Help the community by answering this question:


Don't waste your time asking Realtors about price trends. It was Realtors who were spouting off two years ago that "it was a great time to buy" and "prices never go down." We all know how foolish that advice was. According to Realtors, every day during the past 100 years was a great time to buy OR sell real estate -- and remarkably the same will hold true for the next 100 years.

Realtors may be knowledgeable on current and past prices for their area, but they are NOT experts on future price trends. Realtors are not economists and very few have any business or economic training to speak of. They are salespeople. The reality is that they only get a commission if you buy, so they have an incentive to be less then accurate as to their assessments. The few compotent Realtors with integrity would admit that prices are going down in many parts of the country and most buyers could save money by simply waiting for the bubble to further deflate.

If you can afford the house with a large down payment and conventional financing and don't care about prices dropping further, consider the purchase. But DON"T purchase with the expectation of future price gains. This was a huge bubble that needs to finish deflating. If history is any guide, prices will not rebound quickly when the bottom is finally reached.

Best of Luck,
0 votes Thank Flag Link Tue Apr 15, 2008
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