Quote For The Week

Posted by Editor on September 8th, 2008

Posted In: Home Prices, Housing, Quote For The Week

Robert Shiller, Yale economics professor and chief economist at MacroMarkets, had the following to say about long-term U.S. home prices in an interview on Yahoo! Finance’s Tech Ticker last week:

There’s a lot of misconceptions about home prices. People think that there’s a strong historical uptrend to them. And in fact, by my data, there is not. In fact, home prices in the United States, if you correct for inflation, in 1990 were about the same as they were in 1890.

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This entry was posted on Monday, September 8th, 2008 at 9:20 am and is filed under Home Prices, Housing, Quote For The Week. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Quote For The Week”

Mammoth Says:
September 10th, 2008 at 9:49 am
Front page article in today’s (Sept. 10) Seattle times says that housing prices are back to 2006 levels.

In crash-proof Seattle, mind you!

At this rate, in another 5 years housing in this area may become affordable for J6P to buy a house with a traditional 20% home loan…

-Mammoth
Editor Says:
September 12th, 2008 at 7:27 am
Thanks for the comment Mammoth. The National Association of Realtors might disagree with you, however. From their 2008 public awareness campaign:

Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time…

For example, over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield $23,600. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, at $110,300.

“Home Values” demonstrates the long-term value of housing as an investment, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.

Salespeople…

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