I wanted to share this excerpt from an article I read on housing values - I think those of you who have been fearing that you will never see value in your home again will take great comfort in this expert's opinion:
Rismedia: Feb 20, 2009Commentary: House Prices Will Rise Greatly over the Next Few Years, Buy Now
..."when the money supply is increased by an amount equivalent to 20 or 30% of Gross Domestic Product or more-naturally or unnaturally, inflation must result. That means that prices of all fixed assets rise to keep pace with the devaluation of the currency...Now, what is going to happen to home prices over the next few years?
... a side effect to saving America’s economy will be a robust increase in inflation. I believe that Inflation will regain all the “value” we lost in housing over the past two years, and that it will regain it in five years or less. Simply put, to put the brakes on inflation, government must inhibit the recovery. The people in power aren’t going to do that. Inflation is a necessary evil compared to a full scale depression and an acceptable trade off for most of us. (And oil won’t stay at about $40 a barrel too long, either!)
So tell your clients the truth: Interest rates will never be this low again in their lifetimes. Home prices won’t be this low again in their lifetimes. This is the perfect storm economically, but it also the perfect time to buy a home; provided that you buy it as a home and not a piggy bank. It’s just a nice side benefit that five years from now, the home you bought today will have appreciated so much that you’ll be thinking (just like I did in 1979): “What a smart investor I am!”
About the Author: Mike Parker specializes in online marketing services for Realtors® and real estate professionals.
I hope that makes you feel a bit more positive about the future. Let me now what you think. And incidentally, I rebuilt my website at www.LAhomesite.com - I'd love your feedback. Thanks!