So we tackled the “why should I buy a home now if the market has not hit the bottom?” question in Part 1. One additional comment to that post: You’ll only know we’ve hit the bottom of the market when we’re on the way up…and some areas of Seattle have seen that stabilization of a balanced market as well as a move toward a seller’s market. (See May 2011 Seattle Eastside Market Stats.) Now let’s tackle Part 2 of this series:
Q. “If I do buy now, when will I see appreciation in my home purchase?”
A. That answer is more subjective to the specific area in which you live and the economy of that area. The National Association of Realtors (NAR) projects a modest .5% in the growth of home prices through the end of 2011. Industry experts at Macro Markets LLC conducted a survey to better predict the overall market comeback. They paneled 100 housing industry experts to project the future of housing prices through 2015. The second-half of 2011 is predicted to show slight price increases with a cumulative 10% by 2015.
So we’ve established that regardless, your home is still one of the best long-term investments one can make. Besides, what other investment do you own that everyday has put a roof over your head, sheltered you and your family from the elements, and pays you in dividends via the tax deduction of mortgage interest and taxes?