Real Estate Roller Coaster

[Reef]

real estate roller coaster

thoughts?

[Big TR]

Ugh. I'd just rather see a real graph.

Are they actually saying that the price of a home in 1895 is the same price of a home in 1995, adjusted for inflation? Both of these points were at ground level on the roller coaster.

[Tien]

I can't wait.

[Tien]

I predict a drop in Real estate in a few years.

There has been so much demand for American / Canadian Real Estate in the past 10 years because there has been so much immigration.

As long as immigration continues to pile on, real estate will continue to stay strong.

But if prices start rock bottom dropping, you can be rest assured I will be there to pick up the scrapes.

[NajdorfDefense]

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real estate roller coaster

thoughts?

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Void of actual information.

[Reef]

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real estate roller coaster

thoughts?

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Void of actual information.

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[scotchnrocks]

I don't disagree with the recent trend that graph represents, but it would be better if it were based on dollars per square foot, which more accurately represents what we're getting when we buy a house. The average home was 1525 sf in 1975 and 2225 sf in 2005. http://www.census.gov/const/C25Ann/s...medavgsqft.pdf

So on average we're getting 25% more house in 2005 than 1975, but we're pretending like we're paying for the same size house from 1975. I imagine they were slightly smaller the older you get to a certain point.

[Jimbo232]

[ QUOTE ]
I don't disagree with the recent trend that graph represents, but it would be better if it were based on dollars per square foot, which more accurately represents what we're getting when we buy a house. The average home was 1525 sf in 1975 and 2225 sf in 2005. http://www.census.gov/const/C25Ann/s...medavgsqft.pdf

So on average we're getting 25% more house in 2005 than 1975, but we're pretending like we're paying for the same size house from 1975. I imagine they were slightly smaller the older you get to a certain point.

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This is a very interesting point - along the same lines of overall changes in the size of homes, the study can not capture changes in the quality or features of homes. For instance, items such as granite countertops, security systems, etc. are much more common (I would guess) today then they were 20, 40, or 60 years ago - making comparisons on price alone somewhat less relevant.

I would like to note that I am not disagreeing with the overall premise of the study, but many factors such as size, quality, and features are not taken into account.

[john voight]

hmmm, I know little about RE value, but the last 5 years = scary.

It seems over 100 years the value was very close to the initial 100 benchmark, and the last 5 years have been profound.

I don't know what to make oft his.

The video was cool, very creative.

[TLC]

I really wish that they had plotted that graph on a logarithmic scale. While still greater, it would have made the recent run more visually in line with the post WWII period (~80% vs. ~60%).