I say “Good News, Finally!” The Realtor Association has launched a public awareness campaign to add some positive light on the facts of the present real estate market. We stated some months ago the pendulum had swung too far negative in the media. Statistics can be twisted, and the media sells more papers with sensational headlines. Trade groups have an obligation to spin positive to help their industries. Somewhere firmly between the two extremes lies the truth. From the Realtor campaign:
“Public Awareness Campaign: Home Values
Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time.
For example, over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield $23,600. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, at $110,300.
“Home Values” demonstrates the long-term value of housing as an investment, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.”
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