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I wouldn't even want to guess. I keep on remembering 1989 when we bought a home for $350,000 and a few months later it was worth $300,000 it wasn't untill 1998 that we could sell it for a profit. It didn't affect me since we had no reason to move.....
I had a similar situation. My wife and I moved to Cape Cod in 1990. We bought a home that was listed for $275,000 but for which we paid $250,000. We didn't know it at the time, but the market was taking a downturn. Within a few years the "value" of the home went to somewhere around $210,000 dollars (based on what I saw going on around me). Didn't matter, we weren't moving (indeed, we're still in it! Current worth? Probably now around $600,000).
In 1992 I bought the building lot next to us. It was purchased around 1985 for $55,000 dollars. The value (based on what my lot went for) went up to around $75,000 dollars but by the time I saw it (the owner was putting up a "For Sale Sign" on one of the trees on the property) the owner was asking $55,000 dollars for it. Sold! Didn't even dicker (I figured they had lost enough money just paying the interest and taxes on the property over the years).
We want to sell this lot to buy a winter home down south. Had it on the market for $339,000 dollars, which we reduced to $$335,000. Lots of tire kickers (two years now), no buyers.
No matter. It's paid off, I'm not gonna retire for 2 1/2 years and I like the privacy it affords. But the market does fluctuate, which seems to be a normal event, and the only problem is when a person must sell a property during the down time.
I had a similar situation. My wife and I moved to Cape Cod in 1990. We bought a home that was listed for $275,000 but for which we paid $250,000. We didn't know it at the time, but the market was taking a downturn. Within a few years the "value" of the home went to somewhere around $210,000 dollars (based on what I saw going on around me). Didn't matter, we weren't moving (indeed, we're still in it! Current worth? Probably now around $600,000).
In 1992 I bought the building lot next to us. It was purchased around 1985 for $55,000 dollars. The value (based on what my lot went for) went up to around $75,000 dollars but by the time I saw it (the owner was putting up a "For Sale Sign" on one of the trees on the property) the owner was asking $55,000 dollars for it. Sold! Didn't even dicker (I figured they had lost enough money just paying the interest and taxes on the property over the years).
We want to sell this lot to buy a winter home down south. Had it on the market for $339,000 dollars, which we reduced to $$335,000. Lots of tire kickers (two years now), no buyers.
No matter. It's paid off, I'm not gonna retire for 2 1/2 years and I like the privacy it affords. But the market does fluctuate, which seems to be a normal event, and the only problem is when a person must sell a property during the down time.
A lot of people do not realize that the market has gone down before and it does come up. When who knows but it will come back maybe next year or 5 years from now.
To the OP, there will be no "rebound" short term, that is pretty much a given. There still are a ton of ARM's that will be resetting. Along w/record amounts of inventory still needing to be cleansed out. Anyone who believes there will be a rebound in the short term is really fooling themselves and doing a disservice to the public.
Maybe things might start to stabilize after the summer or late '08. Right now there's no indication that it will though....
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