It isn’t hard to remember back to the housing crash and the great recession. The period left a mark on the housing market.
Up until about 2007, I truly believed, based on past experience and housing performance that housing would always appreciate in value from one year to the next.
Yet I watched as my own home decreased in value by about 40% between 2006 and 2011. It was still worth more than twice as much as we paid for it and today it might be worth slightly more than it was worth in 2006.
It doesn’t really matter unless we sold it and even then we would have to pay more for a house to move to then we would have had to pay in 2011.
I think everyone knows that I can not predict the future but I get inquiries from people who want to move to our marvelous city and they want to know how much a home in a given area will appreciate. People who already own homes in the area will sometime contact me and ask me how much their home will be worth in five years.
There are oh so many variables it just isn’t possible to predict what a home will be worth at some point in the future. During the recent housing market crash, we saw that in some neighborhoods home prices did not go down as much as they did in other neighborhoods.
The neighborhoods that saw the most depreciation during the crash are now seeing the greatest percentage increases in home values.
Don’t ask your real estate agent to predict the future and always remember that past performance does not guarantee future results.
In fact, there are few guarantees in life. However, buying a house is one decision I have never regretted even when it was worth less instead of more.