The Future of Home-Price Appreciation

[Ted Harris]

US News article talking about future home appreciation and bottom being reached in many markets later this year ... I tend to agree with the following taken from the article as it's in line with historic averages:

The trajectory of real estate values will vary a great deal from one market to the next ... overall though prices are back to increasing 1 or 2 percent more than the inflation rate over the next 10 years.

http://www.usnews.com/money/personal-finance/real-estate/articles/2010/03/04/the-future-of-home-price-appreciation.html

[Michael Rossi]

Peter is absolutely right. The USNews article is pure fiction. It's not how much appreciation we'll see, the real issue is how much DEPRECIATION we'll see.

There is a HUGE overhead of unsold homes. Banks are holding MANY foreclosed homes without putting them on the market. 2010 will likely set a record for foreclosures and 2011 will be MUCH worse. Prices are NOT going up - they're going down - WAY DOWN!

Have things stabilized at this point? NO! The only thing that has happened is that the government has spent BILLIONS of dollars propping up prices with their home-buyer programs. That can't last forever.