The chart below shows the national median price for homes over the past four decades. On the right side of the graph, we can see where prices peaked around 2006. What followed was the first and only national decline in values over that 40-year era.
Fortunately, the past few years have seen home prices making their way back toward the long-term trend line.
Chart figures are as compiled by Estate of Mind, Inc. Chart uses a logarithmic scale with an exponential trend line.
There is, however, still a significant gap between the trend and current national median home values. What could this mean?
One theory is that while values are heading up, they still have a ways to go before reaching the price point suggested by the historical trend. The good news for consumers is that because very low interest rates are still available, the cost of financing a home is still near record lows too.
If you have questions about the current mortgage or real estate environment, please contact me