How long should I be prepared to hold my new house if needed?
This is a common question from our buyers. The answer varies depending on market conditions of course, though let’s look at the most difficult situation and answer from that perspective.
The real estate downturn, which started in 2005 locally, lasted 5-6 years depending on how you look at the data. In some areas of the Metro, homeowners may still be underwater if they purchased at the peak, though most areas have now reached or exceeded the highs of 2005. Even the most depressed areas should fully recover by 2015 – a period of 10 years.
We are unlikely to see such a swing again in our lifetime a conservative answer is seven years. If you analyze values back 100 years, you’ll find that they frequently shift in seven year cycles, so even if you happen to buy at the peak – which is impossible to know until long after the peak – then seven years should be more than enough time to regain your value to sell. I tell our buyers that they should be in a position to keep their real estate for a minimum of 5 years with 7 years as a very safe cushion.
If you are in the market to buy or sell, let’s talk this fall! The market continues to have plenty of energy for sellers and isn’t as aggressive as it was last spring, which helps our buyers. If you’re interested in making a move or know someone who is, call us.
For more information on our listings or how we can help sell your home, contact (202) 318-1623 or email firstname.lastname@example.org.
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