Wow! Yes, You Read That Correctly, Local Home Prices Increased 40% In Five Years
Scott P. Rogers
The median sales price five years ago (2016) was $192,500.
Last year, five years later, it was $270,000.
That's a 40% increase in the median sales price over five years!
A variety of thoughts come to mind as a result...
- First, this is great news if you owned a home five years ago and still own it today. Your home's value has increased significantly over these last five years. That value certainly isn't guaranteed to always go up -- and it definitely won't usually go up this quickly -- but this has been a good five years during which to own a home.
- If you have been thinking about buying a home for all or most of the past five years, but have not done so, these increases in prices are likely somewhat (quite?) depressing. Clearly, you'll be paying a higher price for a house today than anytime in the past five years.
- If you fall into the category above (thought about buying but haven't) and you're feeling rotten about how much you'd have to pay for a house today - you have an interest choice in 2022. Do you just go ahead and buy a house even though you can't believe how much you have to pay for it? Do you keep waiting, wondering if prices will come back down in the future?
- If you bought a house a year or two ago -- and at that time couldn't believe how much you had to pay -- you're probably delighted to see that prices have kept on rising after your home purchase.
- Mortgage interest rates have been steadily declining over the past four years while prices rose. If interest rates start to rise (which they are) how will that affect home prices?
