Historically, the real estate market, over time, is always positive. Data includes a consistent upward trend, regardless of the occasional down housing or commercial real estate market. Except for investors who enjoy "flipping" new home purchases quickly, real estate is a long-term asset for most homeowners. Looking at data since the 1970s, you’ll see the inherent trend for increasing prices and values.
National average home prices were around $25,000 in 1970, adjusted for inflation, that compares to $150,000. During the housing bubble, average home prices increased to over $275,000. The commonly-called housing crash dropped average prices across the US to under $150,000.
House prices are finally rebounding to over $150,000 in 2013. However, if you look at the graphic trend line over time, since the 1970s, you’ll see that the trend is consistently upward.
In the middle of the early 1980s recession, fixed rate mortgages across the US were around 12 percent. Although there have been peaks and valleys since then, since 2010, mortgage interest rates have been historically low, around three to four percent.
This simple data, brought to you by Eastland Escrows, reinforces the positive results that owning real estate delivers increasing value over time. If you’re a current home buyer or refinancing homeowner, contact Eastland Escrows, a top independent escrow company for southern California.
Their expertise and independence ensures that you’ll have a successful, stress-free closing. Their independence further ensures that they have no lender or real estate legal relationships that could generate uncomfortable conflict of interest questions from others.