Monday, June 28, 2010

The Roller Coaster of Home Values

Back in 1940, the U.S. conducted its first housing census.  At that time, the median value of a single-family home in the United States was only $30,600.  Sixty years later, that number nearly quadrupled to $119,600 (after adjusting for inflation).  The good news is that every decade saw an increase in the value of single-family homes up to the year 2000.

New home construction tells a different tale.  The average sales price of new home construction in May 1975 was $43,200.  This number grew to $263,000 by May of this year.  However, new home construction hit its peak in 2007, when the average new home price hit $329,000.  Though this number has varied greatly since then, it will be interesting to see how, if, and when history will be able to repeat itself.

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