The graph below shows from Q1 2005 through Q1 2010. Yes, the graph has been recently decreasing, but that decrease has been slowing. Notice the sharp increase in 2006-2007, did anyone really think that was sustainable?
*What I really want you to notice is the long term. From Q1 '05 to Q1 '10, the trend is increasing. If you bought your home in the beginning of 2005 for $200,000, it would be worth generally $227, 505 in the beginning of this year. Sure you hit a high of about $240,000, but at least you haven't lost all your equity. You have still gained $27,505 dollars in estimated value.
Real Estate does fluctuate up and down, but in the long run, the trend has always increased.
My predictions: Going into the fall and winter this year, the amount of home sales are going to decrease, as they always do. There is going to be a higher amount of homes for sale (or inventory as we call it), and that will cause prices to decrease. However, I don't think they are going to decrease back to what they were last year. Then, come spring, homes sales will increase and so will prices. As long as the prices rise more than they fall every year, in the long run, your home's value will increase. Just like we have always seen. :)
Home Price Calculator
Go to this link if you want to see what you home's estimate worth is, based on when you bought it & for how much.
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