Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

The Steep Drop in Home Values May Mean Some Homeowners Who Bought At The Peak May Never Break Even

If we had a dollar for every underwater homeowner who thinks that his or her home will appreciate back to where they bought it in a few years then we could buy our own island – all cash. Even with the recent surge in prices here in the Bay Area and many parts of the Golden State, but according to recent a forecast homes still have a long way to go to recapture their peak values.

U.S. home prices dropped by a third from the start of 2007 to the start of 2012, according to Fiserv.

Fiserv forecasts prices will bounce back an average of 3.7% a year for the next five years — a rate that would still leave prices 20% below the peak. At that forecasted growth rate, the national average high of $238,000 would not be hit again until 2023.

California Break Even Levels May Not Come Until After 2026.

Of course things look different here in the San Francisco Bay Area compared to most of the other parts of the country. Some neighborhoods in San Francisco and other Bay Area cities have almost completely regained their peak value.

In California home prices should grow slightly faster than the national average. Fiserv projects 4.4% gains during the next five years. Even with the projected upswing, the California hole is also deeper, with prices having fallen nearly 46% from early 2007 to early 2012. Break even levels won’t come until after 2026.

As a comparison, homeowners in Nevada may have to wait the longest to hit that break even mark. Home prices in the state plunged nearly 60%, and Fiserv projects annual gains of just 2.3%. It would take some 40 years at that pace to get back to 2007 levels.
It may be time for some of these homeowners to think about other proactive options to deal with their homes.

We have out of the box suggestions and options for underwater homes, so please feel free to contact us for more 411.

Chart courtesy of Fiserv

Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

Home Prices May Not Return To Peak Until 2023

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2 Comments

Filed under California, San Francisco

2 responses to “Home Prices May Not Return To Peak Until 2023

  1. Pingback: C.A.R. California Housing Market Forecast for 2013 | Resource Blog

  2. Pingback: 2013 California Real Estate forecast

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