Profile picture for CharlestonCookies

Is the housing bust over, leveled, or still declining?

Realtors have been calling the bust over before they would even admit it occured.  So, what is it?  Is it over?  Has it leveled?  Will there still be further decline?
And before agents answer here, I'm talking about RESIDENTIAL PROPERTY VALUES.
Not how your business is doing.  Getting advice from Realtors on this has been so frustrating.  
  • November 23 2012 - US
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Answers (6)

From wetdawgs profile: "I am a consumer with no professional involvement in the real estate industry"

Please be critical when accepting advice about buying and selling a home (including market analysis advice), from a novice consumer without professional education and training.
  • November 23 2012
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Profile picture for wetdawgs
"Getting advice from Realtors on this has been so frustrating."    Perhaps that is the problem, Realtors don't know the answer.     Individuals (including Realtors) can look at statistics for sales, DOM, median sales prices and give you a snapshot in time.   The real estate bust goes far beyond that.   Is the frenzy in Florida another blip leading up to another crash even worse than the last one?   The economic mantle calling those shots is way way more than the sales numbers of houses.

Did you ask a salesperson at Circuit City about the economic status of their company?
  • November 23 2012
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This is sort of a loaded question CharlestonCookies. You've really asked two separate questions here. #1. Is the bust over and #2. What do "residential property values" look like.

I work in Orlando, FL and the bust has been over in my local market for quite some time. We crashed so hard and fast that it created a literal fire sale on homes and investors from all over the world flocked here to buy up our bargain distressed properties.
In turn, inventory started to diminish and buyer competition rose driving up values again slowly. The rock bottom interest rates being offered have only fueled the fire.

Even though our market is active and strong showing potential for long term growth, residential property values are still relatively low compared to 2006 and 2007. Some homes lost as much as 50% of their value during the crash, and historically U.S. real estate only appreciates at 5% annually. Even in a very strong bull market, values will take a very long time to fully recover.

The market where you live may have a very different picture so it's important to find a well respected local market expert to evaluate the area you live in. In Miami for instance, there virtually was no crash and they've seen unprecedented growth throughout 2006, 2007, and 2008. The same can be said for San Francisco and several other exceptional markets. I recommend finding a highly rated Realtor® in your area using Zillow or Realtor.com and placing a phone call to them requesting a market report. Good luck and I hope you start getting some better answers!

  • November 23 2012
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Good Morning,

 I can understand the frustrating replies from agents. It is a difficult question to answer because some Realtors tend to work harder than others, so some do more and or less business on a regular basis. What I can tell you is the market trench has increased over the last several years since the crash in 2007-2008. People are back on track and in my personal opinion I think it has picked back up very well and hope to see the trend remain the same, or get better. With that said I cannot predict what the future brings, but don't see a drop for some time. The rates are the best they have been in years, lenders are working even harder to help with every such loan type, and people are taking the leap of faith to re-locate, transfer with jobs and move into bigger or downsize depending on their family needs.

I hope I answered the questions to your liking. If I can help you with anything else please feel free to ask!
  • November 23 2012
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  • November 23 2012
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Profile picture for Outer Banks N C
One reason it is frustrating is that you think we can predict the future for some reason. How could we reliably answer those questions OTHER than to tell you how the business is in my area that I am doing. I have no idea how the market is in Ohio or Florida, I know how it is in my county here in NC. What will it be like next year, next month or tomorrow is calling for speculation or WAG = wild a$$ guesses on our part. The best way to see what a trend has been is looking back at it in time. In other words, I can not tell you when the low will be or when the high will be, but I can tell you in 10 years when it WAS.

My market has leveled off, but it is not going up in value but there are more sales these days than 2 years ago. Will it get better? Yes. When? Who knows!

Tim
  • November 23 2012
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