[Novalug] OT: Re: Remember to vote!
Varol Okan
varokan@movingsatellites.com
Tue Nov 4 14:29:40 EST 2008
ethan@757.org wrote:
>> I see it this way, on average a house doubles in dollar amount every 10
>> years. We had a crazy ride the past 8 years. Inflation is certainly going to
>> take a bite out of the edge. I do not expect house values to drop back to
>> pre-2000 levels or those reasons.
>>
>
> No, that is what stupid Realtors say reflecting on the mania of the past
> few years. Conventionally the value of a house goes up around 3% a year,
> tracking inflation. Reference professor Robert Shiller's graph:
> http://www.1stmillionat33.com/posts/06-09-12/house_his.gif
>
> Realtors... an industry of people who made up a fake term for themselves,
> to avoid being called what they really are... New and used house
> salespeople. With these fake names they earn the trust of the uneducated
> and give financial advice. In other industries you would use your license
> and be forbid to work if you promised future gains.
>
>
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As I said inflation will take a bite out of it. If you look at the graph
it is inflation adjusted. That is what I meant with dollar amount ( vs
value ). In 1950 the average hose price was not 100k and certainly not
in 1890.
googling brought this one up :
http://www.hmcnews.org/communityindicators/web/US-median-housing-values.pdf
which seems to suggest the average price was around 20k in 1950. And yep
I guess doubling every 10 years is not in the future but however you
twist it I don't see any one selling his house for 20k either. So the
truth is some where in between.
Varol :)
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