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Why We Won't See That 20% Annual Appreciation For Awhile Personal incomes have not kept up with home prices. Salaries and wages need to make some big gains to fuel the next rapid appreciation cycle. In some post-red-hot markets prices could decline 5-10% and then plateau for a couple of years. Mortgage lenders have created new products to help those looking to afford in expensive markets. Interest-only and 40 and 50 year amortization come to mind, but tread carefully with these products.
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