There are not many long-term investments that have performed better than residential real estate. Since 1942, there have only been seven years where values have declined.
Many people (particularly in the media) think that we must be in for a large-scale decline because prices increased significantly in 2020 & 2021. However, we've had periods like this previously without a large drop in values.
Everyone focuses on 2007 through 2011, however there are some key differences between that market and today's market:
The inventory of available homes was much larger in 2008 than today. Currently, there are far more buyers than sellers in the market, which is the complete opposite of 2008. This keeps upward pressure on home values.
The foreclosure rate today is considerably lower today than in 2008, and homeowners have much more equity in their properties today, than in 2008.
Lending standards were weaker and riskier loans were available. Those issues have been corrected through regulation in the industry over the past ten years.
Overall, 2008-2011 was the unique event in home prices, not 2021-2022. Buying a home continues to be one of the best long-term investments you can make. When you're ready to get started, we're here to help!