The Future of Home-Price Appreciation
US News article talking about future home appreciation and bottom being reached in many markets later this year ... I tend to agree with the following taken from the article as it's in line with historic averages:
The trajectory of real estate values will vary a great deal from one market to the next ... overall though prices are back to increasing 1 or 2 percent more than the inflation rate over the next 10 years.
http://www.usnews.com/money/personal-finance/real-estate/articles/2010/03/04/the-future-of-home-price-appreciation.html
Most Popular Reply
Peter is absolutely right. The USNews article is pure fiction. It's not how much appreciation we'll see, the real issue is how much DEPRECIATION we'll see.
There is a HUGE overhead of unsold homes. Banks are holding MANY foreclosed homes without putting them on the market. 2010 will likely set a record for foreclosures and 2011 will be MUCH worse. Prices are NOT going up - they're going down - WAY DOWN!
Have things stabilized at this point? NO! The only thing that has happened is that the government has spent BILLIONS of dollars propping up prices with their home-buyer programs. That can't last forever.