How long till home values rise back to normal?

Question

Talk about Rude! Geesh, real estate lawyer or not...take some classes in being a nice person...dam...lol

Answer 1

Ask the Wizard of Oz, not us Yahoos

. . . .and who's to say this isn't normal, and that the higher values were abnormal. . . .?

Answer 2

People want top dollar for there homes i don't think they will move down that much,banks also want top dallor for them too .

Answer 3

Experts predict the housing market in the US will continue to drop and level out for about one more year.

Answer 4

What happened a few years ago was not normal, and a unique set of circumstances artificially inflated home values.  

The biggest contributor, lenders that were loaning money to people who could not afford to purchase homes by traditional means, putting them into creative financing which has caused the foreclosure problem.

Because almost anyone could buy a home, bunches of people were out there buying homes they had no hope of affording.  Due to the laws of supply and demand, prices were shooting up because so many people were scrambling to purchase a home.

Then the inevitable happened, those who bought into ARM loans, 80/20 loans, had their interest rates adjust, they were scraping by before the interest rate when up, and the rest is what we are experiencing now.

Home values will probably be stagnant until next spring, then there may be a modest increase in values if the economy continues to improve.

Answer 5

Whoever can know this bit of information will have the opportunity to become very rich.

Obviously, nobody can predict the market, that's just the nature of the beast.

Incidentally, there is no blanket answer possible, you'd have to be more specific.  Markets in some cities in the US still remain very strong, others have been in the toilet for several years.

Answer 6

Well based on my experience with the last real estate bubble that "popped" in about 1991 or so: about10 years.

What I remember and I live in Los Angeles, CA;

About 2-3 years for the market to hit bottom.

Anther 3, 4 years or so it was wallowing at the bottom.

Then prices slowly inched up for 5 years or so.

And then the market just took off like a rocket for 4, 5 years.

Then the bubble popped last year.

I would guess and it is a guess even if an educated guess; we have anther year or two of prices falling before the bottom.

I've had a Real Estate license since 1989 and work in the commercial side, both residential income and commercial but not homes.

Answer 7

First of all, what happened in the real estate market from 2003-2007 was not NORMAL.  Multiple bids on "AS-IS" properties with no inspections was one of the worst things to ever happen in our industry.  We are now at 2005 levels in most markets, with a slight decrease still possible.

I live in the Bay Area, and homes in the worst neighborhoods were at 600-700K+.  That is NOT normal, and I hope it doesn't get there again for a long long time.  If you bought pre-2001, your probably still in the red, so be happy.

Answer 8

probably not in our lifetime