Quote:
Originally Posted by BrianL99
Anecdotal information and not consistent with the facts.
According to NAR, the average existing homes in the USA have appreciated an average of 3.7%, from 1968 - 2009. Great deal, huh? The general rate of Inflation was 4.5%. There goes your "profit".
According to the Case - Shiller Index, the average existing home appreciated 3.4% from 1987 - 2009. Great deal, huh? General rate of Inflation was 2.9%. Oooops, there goes your profit again!
There are surely regional differences, but guaranteed real estate appreciation is a myth.
Historical real estate appreciation rate in the United States (There are a multitude of additional sources, but the basic facts don't change). |
By the way, the source you linked has not been updated in 15 years (2009), so big grain of salt there. Anyhow...
Unless this is taking into account houses in the sparse regions of Wyoming and South Dakota or maybe including permanent-burn areas like downtown Detroit, I find these numbers crazy talk.
Your sources are telling you that in over 50 years, housing has only appreciated under 4%? So the average 1970 home price of $25,000 has only gone up to approximately $1000? so now the 2019 average home price was $26,000?
Even if that 4% (rounding up) is compounded annually, the 2019 average home price, according to your sources, is $178,000? That might be a more believable number, and your post and your data should indicate the results were from interest compound annually. However you would have to live in a mighty rural or economically depressed area (or in a single-wide, or a 50+ year old rambler, or up a 'Haller' in Appalachia where I actually do have a house) to find a $178,000 house. Averaged out across ALL housing - including tiny homes and cardboard boxes - maybe we reach your sources's numbers.
Or, maybe I should buy a lottery ticket because I have always made money - and lots of it (25-150%) on every home I've bought, owned, lived in, and sold.
Your sources do not, in my humble opinion, reflect the experience of neither anyone I'm familiar with nor anyone frequenting this forum, nor even residents of The Villages, generally.
Quite frankly, I don't believe the source's data reflects the average appreciation, over time, of The Villages or any area with an average income over $50,000/year.