If you believe the most recent headlines, the economy fluctuates from recovery to ruin on a once-a-week basis. In reality, real estate is modestly cyclical in nature and right now the market starts to recover in most areas.
Look at home values over the last 55 years and an especially interesting pattern emerges nationally. Apart from a slight boom in prices between 1975 and 1980, a somewhat larger boom from 1985 to 1990, and the mummy of all booms from 2000 to 2005, real-estate costs have remained comparatively stable throughout the last fifty years.
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Prices have now been virtually squeezed back down to the levels that prevailed in 2k. It is likely they may soon flatten out to where they were ten years back, possibly as early as next year. In more than two-thirds of the country housing cost has dipped to pre-housing bubble levels, making possibilities for those looking out for a bargain, especially if you take into consideration the long range prediction that home prices will begin to rise in 2013 due to less distressed sales.
Though you can feel scared about home possession, property is still your best long-term investment. A major advantage is building equity. The average seller who bought a home in 2002 gained 24% in equity, while people who purchased their homes 15 years ago had a median gain of forty percent.
Home prices are expected to rise in 2013 due to less distressed sales. Now, because of the depression, borrowers with stellar credit and a solid job record are best able to secure financing. However , as conditions continue to improve , the market will expand for borrowers who may not fit the mold of traditional lending standards, for example the self employed.
It is interesting to note the historic trend in home possession that commenced in 1900. In that year the home possession rate was 46.5% By 1960 it rose to 61.9% and today it stands at 66.9%.
While married couples past the age of 35 comprise the largest share of home buyers, single ladies and men, particularly those below the age of 35, have been making headway during the last decade. In 2010, twenty p.c. of home buyers were single women and 12% were single men. Additionally, 36% of them were below the age of 35.
What are the true facts referring to today’s state of American Property?
- Despite a decline, home values are still at historically high levels.
- Mortgage interest rates remain at their lowest levels in 30 years.
- 87% of last year’s home buyers expect to easily make their mortgage payments.
- Fully two-thirds of Americans say now is the best time to buy.
- Property is more affordable now than it has been in 40 years.
- More people own homes now than ever before.
- 91.2% of mortgages are current – only 3.75% are in foreclosure.
- One in three Americans own their homes free and clear.
If you agree, and are interested in purchasing a home here in the Sedona area, get in touch with me with any questions you’ll have. I am at your service.
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