Author Topic: Do house prices always increase in the long term  (Read 4163 times)

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The Prophet

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Do house prices always increase in the long term
« on: November 23, 2011, 09:14:16 am »
It may be a surprise to learn that between 1900 and 1960 the real growth rate in house prices was nearly zero, according to 'Safe as Houses' by Neil Monnery.
If you bought in 1952 prices rose around 2.4% a year to 2010.
If you started in 1995, prices increased by 5% a year in real terms.
Large increases in house prices is a recent occurrence, the historical average annual increase is close to 0.7%


Fred

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Re: Do house prices always increase in the long term
« Reply #1 on: November 25, 2011, 08:46:18 am »
It is because of large rises that we have had large falls in house prices during the last 20 years or so.
A lack of building will mean shortages and that can only increase house prices in the medium term.
It is also only recently that mortgages have not been freely available to most people.

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