Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Thursday, January 31, 2008
Yes and no . . .
As an overall trend, real estate (almost) always increases in value.
The graph below shows the "Four-Quarter Percent Change in Virginia House Price Indexes," based on data from the Office of Federal Housing Enterprise Oversight.
Each quarter, the OFHEO releases the House Price Index, which is described as "...a broad measure of the movement of single family house prices." The figures represent the amount of increase or decrease in housing prices in a particular market, based on a repeat-sales index. They derive their data based on repeat sales of the same property, or refinances of the same property.
Since 1975, there have only been eight quarters (out of 127) when the house price index has declined. The graph below shows the value trend that would have existed for a home valued at $100,000 in 1975 --- using the OFHEO's house price index to determine growth in value.
But don't forget -- all properties do not follow overall trends during all time periods.
Some buyers have mistaken the trend described above to mean that all properties will increase in value during all time periods of ownership. However, it is essential to remember that the trends are based on a market as a whole --- in the case of my examples, the entire state of Virginia. So while real estate values as a whole (in Virginia) seems to (almost) always increase, that will not necessarily be the case for all individual properties in Virginia.
As an overall trend, real estate (almost) always increases in value.
The graph below shows the "Four-Quarter Percent Change in Virginia House Price Indexes," based on data from the Office of Federal Housing Enterprise Oversight.
Each quarter, the OFHEO releases the House Price Index, which is described as "...a broad measure of the movement of single family house prices." The figures represent the amount of increase or decrease in housing prices in a particular market, based on a repeat-sales index. They derive their data based on repeat sales of the same property, or refinances of the same property.
Since 1975, there have only been eight quarters (out of 127) when the house price index has declined. The graph below shows the value trend that would have existed for a home valued at $100,000 in 1975 --- using the OFHEO's house price index to determine growth in value.
But don't forget -- all properties do not follow overall trends during all time periods.
Some buyers have mistaken the trend described above to mean that all properties will increase in value during all time periods of ownership. However, it is essential to remember that the trends are based on a market as a whole --- in the case of my examples, the entire state of Virginia. So while real estate values as a whole (in Virginia) seems to (almost) always increase, that will not necessarily be the case for all individual properties in Virginia.
