How Far the Home Price Increase Will Go?

Ever wonder how far the ever increasing home price will go? This is even evident for places that used to be a lousy town for real estate and now all booming. Foreclosure homes that normally sits on the MLS listing for a long time is a rare find nowadays. And of course even the banks that seized back the properties from deliquent homeowners don't even have any problem of getting full asking price selling these foreclosed homes.

If you have ever been to some places like California you would be shock to find out that a regular 1,200 sq.ft. three-bedroom and one bath would be selling for $300,000 or even more. The would be fortunate homeowners of these homes are proud to tell you that have earned minimum of $50,000 equity in their home. How nice it is to earn that much for equity for just a couple of months after buying that home they live in.

The flip side to this situation is will it get to the point where these average sized three-bedroom homes sell for almost a million dollar after a year or so? Will there be a saturation point for the continued home price increase...how far will it go?
---------------

Written by Resty Malia
Buying a Home Foreclosures