Homes for sale in Williamsburg are priced lower than they have been in years!  In many areas the home prices are lower than they were in 2004 or 2005.

I often have people ask me if the home sales in Williamsburg are picking up and I try to be honest with them about my observations about our real estate market in Williamsburg, Virginia.

Some property owners who ask about home prices in Williamsburg seem very discouraged when I tell them that I don't think their home's value is going to start increasing significantly very soon.  Based on historic trends in home sales and the predictions of many economists, I believe it may be three to five years before we see home prices in Williamsburg rise significantly.

Real estate trends have always been cyclical and history tells us that the cycles tend to last for about seven years.  The last "up cycle" that we experienced was longer than normal and prices escalated at rates that our economy could not support.  What we all need to accept, whether we like it or not, is that the value of our homes have more than likely dropped from what they were at the height of the market in 2005 or 2006. 

Remember that all real estate is local.  I posted a blog about home sales in Williamsburg a few months ago. I noted that the values of homes in some areas have remained relatively stable, while in other subdivisions they have dropped dramatically.  To read this blog click here. 

If you are considering buying a house within the next couple of months, you should probably buy now while the prices and interest rates are low.

The belief by many economists and mortgage professionals is that interest rates will start to rise in 2010.

So, if you are going to buy and plan to stay in the house for at least three to five years, then you will probably see your property's value increase.  If you get an especially good buy, the value of your home may increase more quickly.