Home Values Outpace Inflation
Things seem to get more expensive all the time, considering a postage stamp cost only 6 cents in 1970, a loaf of bread was 24 cents, and a gallon of milk was $1.32. Wouldn’t you love to pay those prices again?
Can the same be said of home prices? The median price of a home in 1970 was $23,000. Granted, most homes are larger these days, but the median price in 2014 was up to $208,300. Take a look at the chart below, and you can see home values have actually outpaced the increasing cost of other basic needs (inflation).
The chart above illustrates the history of national median home values and where they would have been if increasing only at the rate of inflation. The chart is provided with rights for use by Estate of Mind, Inc.
If you own, you have a place to call your own and maybe even some protection against inflation. A home is far more expensive than a gallon of milk, and even a small percentage increase in value can mean many thousands when you sell or tap into equity.
If you’re in the market to buy, a look at history can help to illustrate long-term potential. In addition, with today’s low interest rates, your dream home may be surprisingly affordable.