Victoria, BC real estate blog - "because we never know when interest rates will be increased to stimulate the economy" ~ VREB
Monday, April 9, 2012
A good problem to have
Too many comments on the last post. He's a holdover post till we do the next market update, as soon as data is known. Hope you all had or are having an enjoyable long weekend!
What are you talking about dasmo? What "you" are you referring to with this infographic of US states? This is HHV! Anyway, nobody's denying housing has seen a significant nominal price increase over the last ten years. Perhaps a bit too much?
"Doesn't this one show that over ten years you are up anyway?"
No. What it shows, as MD80 pointed out, is that nominal prices are up in almost all US markets over 10 years ago.
That does not necessarily mean that someone buying 10 years ago is ahead of someone who rented for the last 10 years and buys now. You have to compare the costs incurred by the buyer (e.g. interest, which was a lot higher 10 years ago than today, etc) with the costs of the renter (i.e. rent).
That said I don't think anyone buying 10 years ago in the US made a bad choice. But nobody was calling a bubble back then - either in the US or BC - were they?
We know that long term housing appreciation is 0 to 1% after inflation. So it's not a surprise that that's about what happened in the US.
Obviously the difference to here is that we haven't significantly corrected yet, while they are comparing prices from before the big increase to now. Compare US prices in 2015 to prices in 2005, you won't see the same positive numbers.
7 comments:
Doesn't this one show that over ten years you are up anyway?
What are you talking about dasmo? What "you" are you referring to with this infographic of US states? This is HHV!
Anyway, nobody's denying housing has seen a significant nominal price increase over the last ten years. Perhaps a bit too much?
"Doesn't this one show that over ten years you are up anyway?"
No. What it shows, as MD80 pointed out, is that nominal prices are up in almost all US markets over 10 years ago.
That does not necessarily mean that someone buying 10 years ago is ahead of someone who rented for the last 10 years and buys now. You have to compare the costs incurred by the buyer (e.g. interest, which was a lot higher 10 years ago than today, etc) with the costs of the renter (i.e. rent).
That said I don't think anyone buying 10 years ago in the US made a bad choice. But nobody was calling a bubble back then - either in the US or BC - were they?
We know that long term housing appreciation is 0 to 1% after inflation. So it's not a surprise that that's about what happened in the US.
Obviously the difference to here is that we haven't significantly corrected yet, while they are comparing prices from before the big increase to now. Compare US prices in 2015 to prices in 2005, you won't see the same positive numbers.
Tuesday, April 10, 2012 8:00am
MTD April 2012 2011
Net Unconditional Sales:
145 574
New Listings:
377 1,577
Active Listings:
4,116 4,561
Please Note
•Left Column: stats so far this month
•Right Column: stats for the entire month from last year
Thanks for your kind discussion as I also looking to buy some of the real estate in your area. please provide me some more information on it.
Victoria BC Real Estate
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