Your Home, Your Castle

by Wendell Browne on January 13, 2012

We all know how the real estate market has changed over the last few years. This is especially true in many parts of Florida due to the feeding frenzy of the 2004-2006 era. One thing that is a certain in this business is change. Change is a constant in Real Estate.

One point that I think is important to point out is the fact that you as the homeowner should be looking at your home in the long term real estate cycle. In other words, take the last 2-3 years out of equation as you’re no better off than millions of other Americans.

Step back for a moment and think about your home and that investment you made more in terms of 8-10 years and beyond. The graph below will help you visualize this.

belaire

Belaire Estates

The graph above for this single family development in Lynn Haven, Fl. shows all detached single family home sales from the local MLS system. If you purchased your residence during the time period of the late 1990’s to mid 2003, then you still have equity in your residence EVEN in today’s soft market.

Notice how this subdivision witnessed market appreciation up to mid 2007 at which time it peaked. In late 2007, market correction began and has continued to date. Granted if you attempt to sell it tomorrow when you purchased it in 2007 then you may have some underwater issues. However, if you purchased prior to 2004(in this case), then you most likely still have some equity in your home. SO, from the long term real estate cycle perspective, you haven’t lost.

I hope this information helps to give you some perspective and insight on thinking about your capital investment for the long haul.

Leave a Comment

Previous post:

Next post: