Fluctuating property prices often make prospective buyers and investors think twice about the value of real estate and whether it is a safe investment.
If you pay attention to only the day-to-day media coverage of the real estate scene, you will fail to see the big picture.
In America today, the median sales price for a property is 37% higher than just three years ago.
In anyone’s language, that is a healthy return on investment.
The latest Zillow Home Value Index cites the median price at $417,700, compared with $329,000 in the first quarter of 2020.
More interesting data has come from the Federal Reserve Bank of St. Louis, which has broken down every annual median price since 1980.
A summary looks like this:
1980: $63,700
1985: $82,800
1990: $123,900
1995: $130,000
2000: $165,300
2005: $232,500
2010: $222,900
2015: $289,200
2020: $329,000
2023: $417,700
The data shows a record of incremental value gains that offers long-term opportunities to build wealth through property.
According to the Zillow index, Hawaii currently has the highest median price at $832,688, followed by California at $737,677. The lowest value can be found in West Virginia ($154,152).
NOTE: The information in this article is general in nature and provided as a market overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.