Food For Thought about Real Estate Prices
Dan Runge, with First Place Bank, sent us this intriguing tidbit. We have recommended Dan to many of our clients who are looking to apply for new mortgages and he has done a nice job for them. You can reach Dan at 506-2651.
Please read below to consider what Dan sent.
The housing market continues to face many challenges. High unemployment, foreclosures and other distress sales are keeping negative pressure on prices. This is of course good news if you are looking to buy as low rates and prices have brought affordability to record levels.
Other points to consider:
1. Over the last quarter, price appreciation has occurred in most states.
2. Values over the last year have started to turn up in some states and the pace of decline in most others has slowed significantly.
3. It may pay to remember that the next time you see or hear a negative news story. Despite all the very well publicized problems, looking at the 10 year rates of appreciation shows most states doing very well with typical gains ranging from 30 to 70%. Compared to a flat stock market over the same period, housing looks incredibly favorable.