Market News
According to Case/Shiller Index,the 2005-2007 pricing spike we experienced is an ANOMALY. Because of that spike, it looks like we're experiencing a horrible DROP in value now, when in fact, we are nearly where we would have been, had the market gradually climbed 1% each year over time; not jumping double digits as it did! Homes are selling now and activity should continue to pick-up as unemployment decreases and the economy recovers.
So, the question is not how much the value of your home dropped 'in recent years', but what is it's value today. When price and condition meet, the house will sell. Well-built, well-maintained homes can and do sell for a fair price. NOT an inflated price of 'recent times'. If you put a house on today's market at or near its 2006-inflated price, it's likely not to sell.
At all economic levels, life still happens. People marry, separate, die, have children, move for business etc., Life changes create a market for home buying and selling.
It's a good idea to consider your potential home buyer...the Generations X and Y. Gen Y has been highly impacted by job instability, declining incomes, tighter credit so they are more conservative and may have less available funds. They may rent longer before buying. Gen X is mid-career and are 30+ years old. They've had some tough economic lessons and are less apt to trade up to the next level of housing, choosing to save their money.
Immigrants are expected to save the labor shortage caused by the retiring baby-boomers. They'll have lower salaries and be less likely to buy upscale homes. The baby boomers will need to recoup income and investment losses and be less likely to trade up as
