We’ve all become accustomed to seeing what seems like almost daily real estate articles filled with news about declining housing values.  As 2007 comes to an end anyone who owns a home is longing for something better.  Although most local experts agree that it is too early to be talking about a recovery, there may be at least some hope for anxious homeowners.

For if history has anything to teach us, it’s that real estate recoveries usually come pretty fast once they start.  Consider 1997 across much of the Sacramento region.  After years of military base closings, a recession and loss of jobs, homeowners across the region started to see their home values start to climb again.   Even before the tremendous "boom" that occured from 2001-2005, prices steadily increased from 1997-2001 as well; 62% in Placer County, 53% in El Dorado County, and 51% in Sacramento County.

No one is predicting that we will ever see another boom in values like we did in 2001-2005.  But as the slump goes on, it helps the nerves to understand that the economy–and real estate–is a cycle of ups and downs.  There are many who say that the excess of rising prices and easy lending practices and standards make these unchartered waters.  But if history is a guide say the experts, this too will pass!  It isn’t easy, but homeowners should remind themselves that, fundamentally, Real Estate has always been a sound long-term investment and should continue to be so in the future.

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
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