Yep, the million dollar question these days is - how low will our American home prices go? It's interesting to ponder. You could ask ten random people and you'd get at least ten different responses. If you asked a gambler the same question, he might pause and say, "hey, let's take a guess and BET on it!" Those of us who've spent time in Vegas understand - gamblers win some, and they lose some.
Here's my point... in many areas of America homes are now selling at averages that are 10% or more BELOW the median sales prices of two years ago. This means, you can buy a home today, and only pay 2005 prices. Historically, American homes on a year-to-year average, appreciate at a rate of 4 to 7% per year.
Buy today, and you'll still be ahead even if the market drops another 5%. If you hold the home for 5 to 10 years - you will have property that has appreciated and is worth more (4 to 7% per year) than you paid for it.
As a homeowner that has been my experience. As a realtor, I've had the pleasure of watching it happen for my friends and clients.
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According to the New York Times, Goldman Sachs thinks home prices could decline 5 to 15% by end of 2009 and other sources predict a 20% decline by that time.
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