We bought our home a year ago and have watched it depreciate. How long will we have to hang on before the value goes back to where it was?
Are you sitting down? Experts say you may not recoup that value for a long time. Remember, you’re comparing your place’s value now to a housing bubble, when everything from your parents’ suburban compound to your best friend’s one-bedroom condo was inflated. And depending on where you live, even a year ago, many prices were on the decline.
Now that the bubble has popped, it’s time to be more realistic: Experts estimate that the housing market will take five to seven years to restabilize, which means your home’s value will readjust to its true value (not the inflated value it had a year or two ago). The key is being patient and riding it out if it makes sense for you financially.
Nestpert Joseph Russo, Executive Director of The National Council for Financial Literacy and Real Estate Expert at ITeachAboutMoney.com
See More: Buying a Home