When it comes the real estate, one thing that remains constant – real estate sales and prices go up over time. Let’s look at the past three decades. During the 70’s, 80’s, and 90’s there were significant changes in the economy, some of which were reflected in the housing market. The trend was always the same. The housing market rode it out and improved. 2005 and 2006 were strong years for home sales, but did you know that 2007 was actually the fourth best in history? Existing home sales were projected at 5.92 million for 2007, and they are projected to rise to 6.27 million in 2008, compared with 6.48 million in 2006.
Good News though, the housing market is relative as to when you buy and sell real estate. Taxes are structured to accommodate the premise that when most people sell their home, they are also buying another one because they need a place to live. Because there are financial incentives encouraging this timely reinvestment, regardless of market conditions, buying and selling in a relatively close period of time levels the playing field. If you sell in a high or low market you also buy in a high or low market. If you bought years ago, the market has likely appreciated significantly. Since the 1940’s nationally, real estate has appreciated between 12-13% a year. Remember though, that average is over a 70 year term, some years it has been less and some years more. All in all, over that 70 year term, real estate has produced as good or better than the stock market.
This information was provided by Buffini and Company. To further prove my point; in 1994 my mom sold her house for $40,100.00. That year I bought my first new car for 23,000.00 and thought I was hot stuff because it was worth $30,000.00. I remember thinking man; I could almost trade my car for her house. Last year that same house sold for $162,000, and my car which I still own, might sell for $2,500.00. I wish I did trade that car for her house. Oh well maybe next time.
For more local statistical information Click Here, and open the links below.
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