Do you buy a Home or a House?

Will you buy your house as an investment?

OR

Will you buy your home for a place to raise your family?

If you purchased a home to achieve a historical average of 26% appreciation and if you bought your home at the peak of the market, when will you see the home value recover?

The answer is not easy and it depends on many factors, i.e. location, price point, etc. If you review the charts previously posted, most “experts” expect housing prices to decline through 2011. However, every market is different and price recovery will vary.

Once housing prices stabilize, calculate the percent drop in prices since the day you purchased the home. Use a 26% appreciation per year to determine the length of time it will take to equal the purchase price. That’s if we can expect a normal recovery.

Some “experts” expect a gradual price recovery which will prolong regaining your purchase price. Although not an expert, I think prices will escalate rapidly due to the lack of supply and pent-up demand. You will regain your sales price and achieve some equity.

Regaining a sense of a “normal” housing market will take years if not decades to overcome the impact of the recession on housing. Things to think about:

1. buy a home close to where you work
2. buy a home that fits your family needs
3. buy a home that is close to shopping and recreation
4. buy a home for a “home” and not as an investment