The Current Housing Market- History Repeating Itself
Why does real estate always appreciate over time? The answer is simple-demand for real estate may cool off, slow down, even get stubborn at times, but it never goes away.Most people know that the housing market, like so many other economic forces,moves according to a cycle. Understanding the market cycle allows us to know what is coming next.
Here is the housing market thru 3 cycles; you will begin to see the pattern emerge when you observe how history repeates itself 3 times:
CYCLE A :This shows a history of the housing market from 1980 to 1991:
CYCLE B: A similar pattern emerges in the period 1999 thru 2001:
CYCLE C: Our current cycle:
See the pattern? Now look at the U.S.Census Report of housing prices over time:
So while housing “cycles” it has always appreciated over time, and notice in the chart above that even in our current cycle 2010 prices were still ahead of a decade earlier, with the correction we have just seen.
Now is the absolute best time to invest before the market ” cycles” again; historic low interest rates, housing prices flat but poised rise, all tell us the buyers- market days may be numbered!