Jeff Hansen & Arvin Paredes

408-657-9837

Downtown San Jose Condo & Townhouse Living

History of Home Values

How Does This Grab You?

History of Home Values

First off, I’d like to mention that these statistics are inflation adjusted values, not absolute values. It’s safe to say that overall, home values are up since the 1890 benchmark.  However, because we experienced such a huge rise in prices in the late 1990’s and early 2000’s, the sharp decline in home prices in the summer of 2006 was a major shock. What a lot of us tend to forget is that home values are still above the national average since the benchmark of 1890. As with anything else, it’s easy to believe that when the market is up, it will continue that trend. On the flip side, when we’re experiencing a down market, people have a hard time imagining that things could ever be different. This graph is a good reminder that the market goes through cycles and that what we’re going through today, won’t last forever.

There was a point during this recession that buyers had a complete lack of confidence and were fearful of buying. Currently there’s multiple offers on almost every property at almost every price point. Buyers are trying to take advantage of these historically record low interest rates and low home values. It’s a changing market, one I believe that has already reached the bottom.

Do you believe that now is the time to engage in the market and purchase a home? Feel free to contact me so we can chat about your situation and your perspective; I’d love to help. As always, don’t forget to subscribe.

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