To all Virginians who have seen the value of their homes decline by tens or hundreds of thousands of dollars over the past few years: Brace yourselves.
Steve Harney Inc. mentions a Moody’s/Fiserv report that concludes Virginia home prices will not return to their 2005-2006 peak until 2023 (yes, that’s 14 years from now), or later.
That’s good news for those who stand to benefit from a stock of affordable housing, like first time home buyers, and bad news for homeowners who were banking on rising home values to achieve financial goals such as retirement.
Of course, as the saying goes, all real estate is local. Within Virginia, areas that didn’t see an unsustainable increase in values during the boom years stand to fare better in the recovery. For example, in the second quarter of 2009, the Lynchburg and the New River Valley areas boasted median sales prices above where they stood in VAR’s 2006 year-end home sales summary.