2006-06-13 06:02:15 · 6 answers · asked by alin_94565 1 in Business & Finance ➔ Renting & Real Estate
the presence of a home is sufficient to add value. additional value addition is in our hands
2006-06-13 06:07:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I can't predict the future. I can, however tell you what is happening now. Currently, home prices are not declining. There has been a decrease in the increase (12% appreciation last year vs. 4% this year). The number of sold homes has gone down as well, but the homes that did sell went for 4% more than last year. Home prices are actually going up. The "experts" want home prices to decline because they feel real estate is too big a part of the economy.
The moral is if it feel like time to own, then it is. Don't buy as an investment unless you plan on being a real estate investor. Buy if you want to own and you can afford the payment.
2006-06-17 00:09:52 · answer #2 · answered by kevingeorgecampbell 2 · 0⤊ 0⤋
Unfortunately, home values will at least stabilize, and likely begin a downward movement for two reasons. First, the increases in the Fed Funds rate have begun to affect longer term (mortgage) rates, and as a result, people's buying power (via monthly payments) will shrink, reducing the pool of potential buyers in each category (i.e.: those that could afford a $500K home, can only now afford a $450K home, based upon the increase in monthly interest costs). Secondly, those individuals who got into floating rate or interest only debt will begin to see their payments increase and may have to sell out of their homes, resulting in a larger inventory of housing on the market. More inventory, means more competition for sellers and a reduction in asking prices (thus driving down values). While Geography may play a role in helping to offset (if the local economy is particularly strong)or exacerbate (where housing costs have seen the largest increases in the last few years) the decline, the decline will likely occur in all areas.
2006-06-13 13:14:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The experts keep predicting the real esatae bubble will burst. And areas that have appreiated very rapidly like California and Florida will see a lot of foreclosures.
2006-06-13 13:16:05 · answer #4 · answered by KYRealEstateGuy 4 · 0⤊ 0⤋
I totally agree with affinset's answer. It's a perfect answer!
2006-06-13 13:29:38 · answer #5 · answered by just me000 4 · 0⤊ 0⤋
No one really knows, one can only speculate.
2006-06-13 13:07:23 · answer #6 · answered by lala 1 · 0⤊ 0⤋