It’s all a matter of Perspective?
We are seeing signs in the real estate market that some of the previous ground “lost” is getting back on track or even gains being made! But that is a matter of perspective, as well as LOCATION. Rick Newman’s article “A high-priced home is worth it” discusses WEALTH as created by owning a home and how the “different markets” can vary from the range of good return…CLICK HERE FOR FULL ARTICLE / VIDEO
Real-estate research firm Trulia recently found that homes in the highest-priced cities have appreciated far more than homes in lower-priced cities during the last 30 years. That means people who can afford to buy homes in the costliest cities earn a far higher return on their investment than people who buy in cheaper cities.
San Francisco is the nation’s most expensive market, and the median home price rose from $161,000 in 1986 to $1.06 million today. That’s a gain of $898,000, or 558%. A theoretical family that bought such a home 30 years ago and sold today would have added nearly $900,000 in wealth, which could be invested elsewhere or passed onto children.
In Dayton, Ohio, at the other end of the scale, a median-priced home appreciated from $51,000 in 1986 to $103,000 today. That’s just $52,000 in new wealth, or a 101% gain.
Living costs are far lower in Dayton than in San Francisco, needless to say, and somebody with a job in Dayton may have zero interest in relocating to San Francisco. It might even seem absurd to move someplace where it’s so much harder to buy a home.
