Where Do You Think the Real Estate Market is Heading......

[Aaron Grant]

.........between now and 2020????

A) Going Down (as in some type of correction; thus prices are lower in 2020 than now)

B) Going Flat (between zero and 1% annual appreciation)

C) Going up at reasonable rate (about 3% annual appreciation)

D) Going way up (more than 5% annual appreciation)

[Ned Carey]

@Aaron Grant  I used to live in Montgomery Village.

What market are you referring too? What State? What City? What type of properties? Real estate does not uniformly go up and down. Often when one market is crashing others are stable. As the saying goes "All real estate is local." 2008 was an exception. We are starting to see a more normal trend, in the sense that different markets are reacting differently.

In Baltimore for example, higher end markets are hot. It is tough for rehabbers to find inventory. Yet the lower end of the market is very cheap. Same geographic area but different price ranges going in different directions.

By the way as a contrarian the cheap low end stuff may be the way to go. I was at two auctions today that would make great low end rentals. Both could meet the 3% or maybe even the 4% test. One was mine.  I sold it for only $12,500! and it was in decent condition and needed modest work.* The other was tenant occupied at about $30K

* Side note. I hated to give the property away that cheaply but it was an auction and you get what you get. We took this is a tax foreclosure. The woman who owned it paid $82K in 2007

So I am not going to give a guess. I will say that the next downturn will probably come from a different direction than the last one.