When will house prices go back up?

Question

I live in California and I just hope they're back up in about 5 years. What do you think?

Answer 1

I am not sure what you mean by "back up". If you mean that they will be back to peak levels from back in 2005, I think we can expect to see that around 2014, 2015.

If you mean that prices will have hit bottom, and started rising again - I think we can expect to see that around 2011-2012.

Look at it this way - typically there is a ten year cycle in real estate. It takes 10 years to hit bottom, and then ten years to hit its peak. This time around, the market started growing around 1992, and didn't stop until 2005 - and it was on a national level unlike previous cycles.

Answer 2

Maybe, maybe not.

Experts are just making predictions and they may or may not hold water.

Time will tell.

You should never, ever make financial decisions based on whether you think the value will go up and down, if you do, all you are doing is gambling, and for many Californians, that gamble simply didn't pay off.

PS:  ...and know that the MAJORITY if America DOES NOT live in California.  Californians are so used to paying out the nose for everything they are oblivious to what normal housing costs are.

For example, I live in Charlotte, NC, you can get a very, very nice starter home, about 1700 sq ft, with all the upgrades like hardwood floors, garages, nice kitchens, huge bedrooms, in SWIM CLUB communities with a good HOA easily for $150,000...and that is NEW construction.

Resale is even less.

People move here from California frequently pay cash for their homes, that are twice the size of what they had, and don't even have to worry about financing at all....they are my favorite customers.

Answer 3

Economist suggest that by mid-2009 onwards, prices will be close to where... not quite the peak, but better than now... so you might just have to hang in there for a while...

Answer 4

When people  start working agin. When gas prices  level out So a would say  about 8 years Just hold on

Answer 5

When the current glut of repossessed houses are exhausted and there are more buyers than available houses.  The market controls this, not the president.

Answer 6

Alot of predictions are for spring of 2009, but in my market, there are already signs of improvement.

Answer 7

5 to 7 maybe

Answer 8

If you believe reputable sources like business week, there is a strong possibility that things could collapse a whole lot more, and we're only beginning to feel the pain.

Answer 9

From the research that I've done ... it appears that it just depends on the area of the country that you are in  .... or een what area of a state that you are in , for that matter.

Homes in my area here in Florida are beginning to move ; but very slowly upward again ....

Even within my town , my sub division continues to be a prime area to purchase a home at a nice / fair price .. while just a mile or so down the road in other subdivisions ..the houses do not move ....

Also; it can depend on your realtor ..... A Realtor who can assist the BUYER with getting a NO Downpayment Mortgage with a 595 Credit Score will certainly be able to move more property than a realtor who does NOT assist with helping a buyer to get a mortgage ..etct ....

I do believe that it will be three to five years yet before real estate prices will actually get back to what they were in the early part of 2006 .....

Answer 10

2011.

Answer 11

Houses in California were overpriced for years, and now have found their true value.I had a house in Concord in 1977 that I paid $83,000 for.Today the same house is worth $750,000! Totally NUTS!

Answer 12

When we don't have a bad president

Answer 13

It depends on how many people keep their homes and keep paying those mortgage obligations.  If we get many more defaults and foreclosures on the market, we not only increase the glut on the market but threaten the survival of Fannie Mae, Freddie Mac and the lenders, which will prevent people from being able to buy a home.  

In the economic turmoil following the S&L Crisis of 1989, it took 4-5 years for prices to recover and start increasing again.  From the 1929 Crash, it took until after WW2 for housing prices to recover.

So -- it depends on how many people keep up their payments vs. how many try to walk away or go into foreclosure.

Answer 14

Carrie, from what I hear they are pretty darn high now. See some of the questions in this section. $350,000 for a starter home? Pretty steep.

However, the area in California is a popular place to live and the population continually is increasing, causing pressure on land values, causing continual price increases.

Regards,

Dan

Answer 15

We are at the final stages of the mortgage crisis. House prices will start to go up as soon as oil goes below $100.

Answer 16

I also live in California but I hope prices stay where they are or go even lower so more people can afford to own houses.  I think of houses as places to live instead of an investment.