I used to think that once the lost values returned to the values of 2005 – 2007 and to those in particular who purchased (or refinanced) during that time, that all would be well. But I’m realizing this is not the case. Yes people’s home values are back to those levels, however they have lost time.


Real estate is cyclical, no doubt about it,  which is the nature of the beast and not a bad thing. However this crash was so incredibly deep that returning values was just the first step. (Well maybe the first step was moving through all those foreclosures…yikes!)
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Now the next step is gaining the increased equity through appreciation that they should have had after 10 years. For example you purchase a home for $600k in 2005 . Instead of the house appreciating to $800k in 10 years (3% annual appreciation) it is now 10 YEARS LATER and prices are just returning to those 2005 – 2007  levels….low inventory continues.