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Heres how much housing prices have skyrocketed over the last 50 years
invite response
2017 Jun 24, 3:03am 3,198 views 12 comments
Comments 1 - 12 of 12 Search these comments
The numbers say it all. Home prices always go up.
Everyone line up and buy more tulips before you're priced out forever!
The numbers say it all. Home prices always go up.
And immediate gratification,keeping up with the Jones, buyers will continue to overpay.
GNL
2017 Jun 25, 3:45pm
I have come to the conclusion that ApocalypseFuck is the wisest or all on Pat.net. I'm serious.
I have come to the conclusion that ApocalypseFuck is the wisest or all on Pat.net. I'm serious.
He's on Patnet. He can't be wise.
Strategist
2017 Jun 25, 5:21pm
http://www.ocregister.com/2017/06/25/how-much-longer-can-home-prices-keep-going-up/
All hair stylist Erin Bond wants is a decent two-bedroom condo in Orange County, preferably in Huntington Beach.
But all she can afford is $400,000 to $420,000.
In a county where the median price of a condo in May was almost $500,000, she’s not sure there’s anything in her price range she can live with.
“It’s pretty disappointing,†said Bond, 35. “You can’t even buy anything that low. I mean, there are things out there, but they’re not nice.â€
So Bond’s plan is to wait until the market goes down again. And if it doesn’t, “I would continue to rent.â€
A lot of homebuyers are facing Bond’s conundrum.
For 62 straight months, Southern California home prices have gone in one direction. Up.
PeopleUnited
2017 Jun 25, 6:04pm
The numbers say it all. Home prices always go up.
And immediate gratification,keeping up with the Jones, buyers will continue to overpay.
If there were no thirty year mortgages, prices would have to come back to reality. In the meantime renting is not that bad.
For 62 straight months, Southern California home prices have gone in one direction. Up.
By the logic then, it won't ever stop. Once something has gone up for so long, it won't ever come down. It's fiziks.
SFace
2017 Jun 26, 10:23pm
I never understood why housing would track inflation.
If the business of America is business, then in a way, the business of the American family is owning real estate.
Do you think over the last 30 years, a real estate investment trust returned the rate of inflation? Hell no, reits have outperformed the s&p 500.
So somewhere the answer lies in real estate assets track the returns of wall Street, adjusted for some variance. Inflation is not the base, but market return for reits. Rents probably outpaced inflation as well long term which drives reit returns
There is no reit in the world that owns single family homes. Except silver bay. The next best compatible will be reits from apartment owners. You can bet your life that business returned over 9% over the last 50 years.
Food for thought: Here's what happened if you took the median home value in 1940 and invested it an S&P 500 index fund:
1940: $2,938
1950: $4,031
1960: $13,861
1970: $21,571
1980: $26,489
1990: $81,205
2000: $340,518
Interesting of course that 2010 would have seen a dip compared to 2000, but in 2017 it would have reached almost $600k.
If you want to buy a house this year, you may well be paying around $199,200, the median price for a home in the U.S., according to Zillow.
Houses weren't always this expensive. In 1940, the median home value in the U.S. was just $2,938. In 1980, it was $47,200, and by 2000, it had risen to $119,600. Even adjusted for inflation, the median home price in 1940 would only have been $30,600 in 2000 dollars, according to data from the U.S. Census.
Here's how much the median home value in the U.S. has changed between 1940 and 2000:
•1940: $2,938
•1950: $7,354
•1960: $11,900
•1970: $17,000
•1980: $47,200
•1990: $79,100
•2000: $119,600
Here are those values again, adjusted for 2000 dollars:
•1940: $30,600
•1950: $44,600
•1960: $58,600
•1970: $65,600
•1980: $93,400
•1990: $101,100
•2000: $119,600
It's natural for prices to rise over time. But the issue here is that home values are outpacing inflation, making it nearly impossible for new and young buyers to enter the market.
Dramatically higher prices are partly why the typical homebuyer is now 44, whereas in 1981, the typical homebuyer was 25-34.
In 2016, home prices rose twice as fast as inflation. And in nearly two-thirds of the country, housing price growth exceeded wage growth. While homes in some towns remained affordable, in places like Manhattan and San Francisco buyers would need to fork over between 95 and 120 percent of their average paycheck to afford a mortgage payment.
More Including Sub Links etc. http://www.cnbc.com/2017/06/23/how-much-housing-prices-have-risen-since-1940.html
#Housing #Economics #RealEstate