That is a lovely interview; too bad the bit about "5, 7 or 10 percent appreciation" being normal is pure fiction. Check the facts (which are amply supported with data) in Robert Shiller's "Irrational Exuberance" 2nd edition. The century from 1899-1998 featured an average real appreciation of the values of homes on the order of 1/2 percent annually. The period from 1998-2005 represented the biggest runup in nationwide (worldwide?) residential real estate prices in history, and we are still unraveling (i.e., prices are falling in most markets formerly referred to as a bit frothy).
Your comment is appreciated. It is our hope that this site will foster open debate and your viewpoint is welcome. Our market here in the East Bay is unique. As you pan out and explore greater national and worldwide averages, speculating on real estate as an investment warrants further caution. As residential real estate specialists, we see a broad spectrum of merits to home ownership. For many, investment potential can be a worthy incentive. We intended to balance those hopes with the realities of a changing market by posting the interview.
2 comments:
That is a lovely interview; too bad the bit about "5, 7 or 10 percent appreciation" being normal is pure fiction. Check the facts (which are amply supported with data) in Robert Shiller's "Irrational Exuberance" 2nd edition. The century from 1899-1998 featured an average real appreciation of the values of homes on the order of 1/2 percent annually. The period from 1998-2005 represented the biggest runup in nationwide (worldwide?) residential real estate prices in history, and we are still unraveling (i.e., prices are falling in most markets formerly referred to as a bit frothy).
Your comment is appreciated. It is our hope that this site will foster open debate and your viewpoint is welcome. Our market here in the East Bay is unique. As you pan out and explore greater national and worldwide averages, speculating on real estate as an investment warrants further caution. As residential real estate specialists, we see a broad spectrum of merits to home ownership. For many, investment potential can be a worthy incentive. We intended to balance those hopes with the realities of a changing market by posting the interview.
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