Sometimes it’s hard to discern what is really true about today’s housing market. If you are looking for bad news, it’s easy to find. But the good news is just as prevalent. Think of what you would have missed if you would have listened to some of the “experts” throughout the years:
- “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” Time Magazine 1947
- “Houses cost too much for the mass market. Today’s average price is out of reach for two-thirds of all buyers.” Science Digest 1948, (average price at the time: $8,000)
- “The goal of owning a home seems to be getting beyond the reach of more and more Americans.” Business Week 1969,(average price at the time: $28,000)
- “The era of easy profits in real estate may be drawing to a close.” Money Magazine 1981
- “If you are looking to buy, be careful. Rising home values are not a sure thing anymore.” Miami Herald 1985
- “Most economists agree…a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was…” Money Magazine 1986
- “We’re starting to go back to the time when you bought a home not for it’s potential money-making abilities, but rather as a nesting spot.” Los Angeles Times 1993 (Note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since).
- “Financial planners agree that houses will continue to be a poor investment.” Kiplinger’s Personal Financial Magazine 1993
- “A home is where the bad investment is.” San Francisco Examiner 1996
There is still plenty of good news in the housing market. Look for it; it is there to be found! Interest rates are still very good, especially when you compare them over the past 30 years. There are some great values to be found in the new home market. If you can find the right builder, they will look at your specific circumstances and do everything they can do get you into your next new home.
