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Answers (9)
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
The last few cycles have been around 10 years BUT I doubt it this time. BEST time to buy is when you start to read about new hiring of business in the newspapers, which has not happened yet in this cycle. Low interest rates may be good for values in the short term but generally un-sustainable in the long run.
- Linda Strasberg, "L Strasberg"
- Contributions:2315
Prices will increase when the supply side is exhausted....which could be any year now.
- Alex Saenger, "AlexSaenger"
- Contributions:626
Over 10 years the typical life cycle is a flat period, followed by a decrease, another flat period and then an exponential rise at the end of the 10 year period. We are currently in the decrease phase rising to the second plateau. How long this takes is a crystal ball question, but my guess would be that within the next 12-36 months, we will start to see an increase. But before that happens, we have to see all of these Short Sales and Foreclosures cycle through the market.
based on past history every 10 years homes double depending on where you live.
- sunnyview
- Contributions:25139
Real estate can be down in local areas for 10 years without breaking a sweat. It can be down for longer if an area loses a major employer, has a natural disaster or has been overbuilt into an unsustainable community without local services. This recent down turn was based on stacking and easy money. It has not been seen on a scale like this before so recovery and appreciation may take a while in many areas.
- Leon & Delretha De Vose, "Realty Consultants"
- Contributions:9
We are now seeing pre-1998 prices.
Normally it is a pendulum swing that takes 5 to 7 years to make a full cycle.
I said normally.
When you factor in all that is going on right now politically, economically, socially, nationally, internationally, you have a lot to clean off the gears. So the pendulum is stuck.
However, the technicians are finding that the only way to unclog the gears is to push the pendulum back. So prices continue to fall.
And more debris keeps gathering on the gears....
{TO BE CONTINUED...}
- hpvanc
- Contributions:2579
I believe that on the national scale, we are on a trajectory not seen since the 1930's. The only thing that is clear is that it will follow economic law and over correct before returning to equilibrium. How long that will take remains unclear.
- James Callas, "ABBAUSA"
- Contributions:960
As a young real estate investor in my early 30's, i bought and bought.
My mantra "real estate never goes down in value". I had read that, I had believed it and I moved ahead with that thought.....i did not know any better.
I bought properties all over my town....single family, duplexes, marginal property and nice brick homes in a desirable part of town. I built a 9 unit apartment complex near our local university.......perfect decsions I thought at the time....after all "real estate never goes down in value".....this was very good for a good long time and I exceeded 7 figures in networth.....but not very long.........In the early 80's the bottom fail out of the oilfield industry and the value that I thought never goes down.........fail like a brick. My tenants moved out and on.....i was servicing my debt with my savings and my now limited construction company funds...........I never would have believed what had happened and how quickly it happened. I am a wiser investor now, but only because I suffered through it....experience is a great teacher, but the tuition can be staggering.
Real Estate goes up and down on a 5 to 10 year cycle and for other reasons.....regional, national, international............figure it out and let me know.
Good Luck!
James Callas - Realtor®
"real estate never goes down in value" is only somewhat true over the very long term.......real estate goes up and down and when it goes down be prepared
My mantra "real estate never goes down in value". I had read that, I had believed it and I moved ahead with that thought.....i did not know any better.
I bought properties all over my town....single family, duplexes, marginal property and nice brick homes in a desirable part of town. I built a 9 unit apartment complex near our local university.......perfect decsions I thought at the time....after all "real estate never goes down in value".....this was very good for a good long time and I exceeded 7 figures in networth.....but not very long.........In the early 80's the bottom fail out of the oilfield industry and the value that I thought never goes down.........fail like a brick. My tenants moved out and on.....i was servicing my debt with my savings and my now limited construction company funds...........I never would have believed what had happened and how quickly it happened. I am a wiser investor now, but only because I suffered through it....experience is a great teacher, but the tuition can be staggering.
Real Estate goes up and down on a 5 to 10 year cycle and for other reasons.....regional, national, international............figure it out and let me know.
Good Luck!
James Callas - Realtor®
"real estate never goes down in value" is only somewhat true over the very long term.......real estate goes up and down and when it goes down be prepared
- SoCal_Engr
- Contributions:5667
What you're likely to hear is "typically, it doesn't". There's some truth to this (at least in SoCal), because it's pretty much been an up-market since the early '70's.
In the late '80's and early '90's, there was a period of 3 years where housing values took a dump. I tried selling my SoCal home (in the early '90's) for 85% of what I paid in '88, and didn't even get an offer.
I later sold in the early 2000's for 150% of my purchase price, and it eventually topped out at about 244%...just before the ugliness of 2007-2009. The Zestimate on it is now about what we sold for in the 2000's.
So....
Last time I saw a down market, it went for about 2-3 years. After that, it took about another 5 years to get back to pre-bust prices. The bottom line is the market will go down until everyone feels that the prices have dropped as low as they will go. After that, it will take a while for the prices to crawl back up to pre-bust prices. Anyone who tells you they can call how long either of these are is either (a) much smarter than anyone else, or (b) lying through their teeth.
Add Note: Since RE is pretty locale-specific, how your local market reacts to all this may not trend with national or other locale-specific trends.
In the late '80's and early '90's, there was a period of 3 years where housing values took a dump. I tried selling my SoCal home (in the early '90's) for 85% of what I paid in '88, and didn't even get an offer.
I later sold in the early 2000's for 150% of my purchase price, and it eventually topped out at about 244%...just before the ugliness of 2007-2009. The Zestimate on it is now about what we sold for in the 2000's.
So....
Last time I saw a down market, it went for about 2-3 years. After that, it took about another 5 years to get back to pre-bust prices. The bottom line is the market will go down until everyone feels that the prices have dropped as low as they will go. After that, it will take a while for the prices to crawl back up to pre-bust prices. Anyone who tells you they can call how long either of these are is either (a) much smarter than anyone else, or (b) lying through their teeth.
Add Note: Since RE is pretty locale-specific, how your local market reacts to all this may not trend with national or other locale-specific trends.
Typically how many years does the real estate market go down
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