Tracking home prices
I got this from a friend and client (thanks, Bruce!!) and I thought it was just too good to keep a secret. Check out the chart. (If you click on it you’ll get a full size picture)
30 years of average home prices
It you look closely you’ll see a few things that I think are interesting. First is the Average Annual Increase at 6%. That is 6% over 30 YEARS. Second, you’ll see why it FEELS so bad over the last few years. Starting in 2002 we began to see a steeper climb of median sales prices and it continued until 2005 and then leveled off and withdrew through 2008. I am sure we are still withdrawing nationally and I expect an over correction in the 2009 numbers but from there we will see it fall back on that 6% curve that was our history.
This curve is exactly like the one I posted in this article where I charted a house purchased in 1995 in Georgia. It shows we are actually coming out of this NOW locally and seeing an increase on home values returning. In fact, this trend has continued in the second quarter data that was posted after that article was written. Locally is important to remember because we did not have the HUGE increases that show on the chart above so we did not have the HUGE decreases either. Real Estate is ALWAYS a local story!!!
I wanted to share this with you because it continues to answer the No. 1 question I still get. How is the “Market”? Which I believe is really “Are we going to be OK?”. Check out The Good News Economist article that addresses that for some more data.
The most valuable thing I can share with you is HOPE. We are coming out of this and while there is unemployment to deal with it will be OK. Don’t let this get you so discouraged you fail to see the signs of the recovery that are all around us. The National Economy is not nearly as important as your Personal Economy. If you are looking for a job, keep looking. Don’t give up. Use the time to increase your skills and knowledge. Save if you can and spend less than you make.
If you know someone facing foreclosure or needing to make a change in some other way with real estate call me. I am trained and experienced and can help. It will still be tough for a while but just remember, “This too shall pass”. It always does.
Thanks for listening,
Jerry Robertson