Quote:
Originally Posted by Choker
Homes are still depreciating at over 7% a year here and show no signs of slowing down. In fact if last quarters depreciation continues for the rest of the year the depreciation rate is accelerating. The last 5 years depreciation has wiped out the last 15 years gains. Yes I realize depreciation HAS TO SLOW down eventualy but it is very possible it won't for another 5 years. Do the math on that. A 100k house would be worth 77,378 in 5 years with 5% depreciation, and it's actually over 7% here. Even if she got a 3% mortgage she would be in the hole big time in 5 years. Yes rent is the same as a mortgage but depreciation wipes that out plus a lot. Pay the same for rent or mortgage in 5 years you would have to bring over 15k to the table to sell your home. If you rented you could just walk away owing nothing. Does anyone else here get this?
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I have a feeling homes aren't depreciating at 5-7% a year anymore. The market crashed in 2008, to 2009 then 2010 then 2011, then 2012 yes I would believe that. However across the country many areas have hit bottom. There isn't a single state in the country that is still depreciating at 5-7%, not a single one.
In fact, here is an article from yesterday stating Phoenix is expected to be the highest appreciation in the country from this year to next year:
http://www.huffingtonpost.com/dr-sta...b_1699455.html
