Housing Market Faces a Lost Decade
For all the ink spilled in the mainstream media over up and down fluctuations in real estate, the idea of a coming lost decade in the housing market finally sounds about right.
From the Washington Post:
“Even after the housing market stabilizes, it will take years for some owners to see the value of their homes appreciate. About 25 percent of homeowners owe more than their home is worth, according to data from First American CoreLogic, a research firm.
“While it has historically taken five to 10 years for home prices to regain losses after a major downturn, analysts said, it is likely to take much longer this time, particularly in parts of the country that have seen the steepest declines.
“‘In California, Florida, in the ground-zero zones, it could take 15 years to fully recover,’ said Lawrence Yun, chief economist for the National Association of Realtors.”
Whether it’s five to ten years, or perhaps fifteen, the housing market will require a great deal of time before showing sustainable improvement. For more details from this article, see the Washington Post’s coverage of how the housing recovery could take a decade.