There are times when it seems that all the real estate market does is go from boom to bust and back again and while there is some truth in that, an examination of the facts shows that overall the trend is always upwards.
The chart on this page depicts home values from 1984 to 2017 and you can see the overall trend is extremely positive. Certainly, prices have rarely increased steadily for long periods of time but when they have fallen, there has always been a good reason.
From 1984 to 1990 values almost doubled. Then there was a correction which went through to 1994 that caused a 10-11% reduction.
1995 was the beginning of a strong 6 year cycle when again, prices almost doubled, and that was brought to a stop by the burst of the dot-com bubble.
That didn’t last too long though, and 2002 to 2007 saw further increases of around 60% which was brought to a grinding halt related to the collapse of the financial markets that wiped 27% off home values over a 4 year period.
But again, the housing market recovered, and from 2012 through 2017 we have seen increases of around 80% and this continues to the present day.
How long the present trend will continue is hard to say. As we can see, every time the upward trend has been interrupted, there has been a good reason.
Real estate in our area has proven to be a good long term investment and it’s also the only one that provides a roof over your head.