The Value Of Your House Will Only Increase, Always, Forever, For Sure


The Value Of Your House Will Only Increase, Always, Forever, For Sure
By Scott Rogers • October 25, 2010
Here's an interesting report from NPR telling the story of an employee of Freddie Mac who manages an online calculator that has (intentionally or unintentionally) been telling web users that home values will only go up! Read more from NPR: Housing Guy Apologizes For Housing Bubble It is interesting --- I do wish home values would only go up --- and during most years values do increase. The last few years, however, have not held that promised increase. That said, it depends on the time horizon that you consider. First, the year to year bad news -- home values decreased for 4 out of the past 10 years. That is to say that the first six years of the decade showed an increase ('01, '02, '03, '04, '05, '06) but the most recent four years have shown a decrease ('07, '08, '09, '10). But here's an interesting cumulative look at the value of a $200,000 home purchased in 2000: 2001: 9% increase to $218,000 (9% cumulative increase) 2002: 2% increase to $222,360 (11% cumulative increase) 2003: 8% increase to $240,149 (20% cumulative increase) 2004: 16% increase to $278,573 (39% cumulative increase) 2005: 24% increase to $345,430 (73% cumulative increase) 2006: 8% increase to $373,064 (87% cumulative increase) 2007: 1% decrease to $369,333 (85% cumulative increase) 2008: 4% decrease to $354,560 (77% cumulative increase) 2009: 5% decrease to $336,832 (68% cumulative increase) 2010: 3% decrease to $326,727 (63% cumulative increase) So....the premise of the title of this blog post was certainly wrong. Home values can certainly decline over the short term, and perhaps over the long term? Thus far, home prices are still quite solid over the 10 year horizon --- showing a 63% increase. That said, 2006 through 2016 home values might tell a different story. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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