Thursday, June 19, 2008

Decline in MI home values expected to continue

With the continued downturn in automotive industry, additional layoffs, downsizing and general decline of the local economy, I am expecting property values to decline an additional 25 to 40% over the next two years. My best guess at this point, is the bottom should fall out somewhere around 2010 to 2011 and home values should begin to trend back up by mid 2012. This is assuming that the recession ends and economic recovery takes place. Should the recession linger, hampered by inflation, or world market factors, the recovery of home prices may be delayed until 2016 or later.