Some economists think home prices will remain depressed for a decade or more. I've been saying 12-15 years and that only gets owners who (like me) bought in 06-08 back to their original purchase price. This does not even take into condideration the $2,700 a year in condo dues, insurance, taxes and whatever you spend in upkeep. So as I said before you will NEVER get your original purchase money back.
CNN Money says in part:
"House prices have fallen further in the past five years than they did in the Great Depression – and there's no sign the free fall is about to stop", and also: "So how long till you get your head back above water on a house bought at the top of the market? Try 2025".
Even though it seems a good time to buy the market probably won't hit bottom until 2012 and many people are going into rental property rather than take the plunge into homeownership. At NCC we have had those foreclosed units sell at 45-55% of original prices. The banks and mortgage companies want to get rid of this inventory so such good deals will probably take those distressed condos off the market a few months after they are available for sale. This is good news for the new Owners and it helps to have those units under new ownership as we need those quarterly dues payments coming in.
