Is market back to 2006 values?

Question

Hello fellow investors,

I'm looking for input on where you think the SE Wisconsin real estate marking is vauled at now a days.

If we consider 2008 to be the peak before the market burst and values started to decline, and we have been recovering slowly over the past year or two, would you say that property values are similar to those of 2006? 2007? 2005? 2004?

Let me know your experience.

Thanks, Doug

Russell Brazil · Answer

I would say using historical prices to price this property is a very bad idea. If you are unable to value the property, enlist the services of an agent.

Doug Prahst · Answer

Thanks for the input.

I'll looking at buying a unique property (no comps) that the seller purchased in 2003 and hasn't done any updating or major maintenance. I'm estimating that if they purchased for $300,000 in 2003 and in general our property values are back to 2006 when we were experiencing 8% appreciation, the current value could be estimated at about $380,000. Just my train of thought.

Scott Schultz · Answer

I got my License in 2006, worked in the Default side of things, from my observation in the Fox Valley area (where i worked till November of 2014) values have not yet fully recovered to pre crash insanity numbers, we didnt lose sharply but are not returning quick either, while right now, activity is high, prices are not yet following, we are still down a good 10% I dont see that coming back any time soon, nor should it, prices were hyper inflated in 06/07' but who knows, with more buyers in the market that could change.

Russell Brazil · Answer

In my market place there is no one clear answer. We have some parts of the market that have blown right through the peak, and other parts that are no where near peak values. I can point to some properties that are $100k below peak, $200k below peak, and others that are high as $300-$400k above peak.

Laura Alamery · Answer

According to the Federal Housing Finance Agency, as of July 2015 we had already reached the levels of November 2006 (pre housing crisis,) with the average nationwide house price of $240,000. As of today, we have risen another 3% nationwide average since July 2015.

The Midwest, from Wisconsin to Texas, are on the higher end of the price recovery, compared to other parts of the country, like East and West coast.

I hope this helps you. :)

Is market back to 2006 values?

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