The average home sale price may not suggest a whole lot by itself. It depends on the area you’re looking at, the size of the house, the shape it’s in, plus countless other variables.
But when you take the average home sale price for each of the last 50 years — then you’ve got some powerful data that can really help inform your home buying decision. So stop asking your brother-in-law, who bought his house 2 years ago, about the current housing market. Data like this helps you take back control and sleep easy. Because you know that your decision is based on facts and statistics, rather than feelings and hearsay.
Knowledge is Power
I sure do love historical statistics that prove how amazing of an investment real estate can be. It’s my sincere belief that every family in America who saves for retirement should also consider owning a rental property….and the historical statistics sure do seem to support this belief.
Scroll down to see the two page document that shows the hard facts about Portland’s median home sale price, going all the way back to 1960.
Check out what reliably happens, every decade, for the last 50 years (up to 2010). Also consider that at the end of every decade, there were most likely those who believed prices had moved up so much in the last ten years that they couldn’t possibly increase in the future.
Boy were they wrong.
Time To Crunch The Numbers
Dig thru the stats, check out the yearly changes to the average home sale price. Then you can start to see what kind of percentage increase that’s reasonable to expect if you bought a home tomorrow. But Remember — you should always make conservative estimates. Things happen. And most of the time those “things” are completely out of our control.
While it’s true that from year-to-year, the vast majority of the time the median sales prices increased. BUT, you’ll also notice that they don’t always go up (e.g. the financial crisis that started in 2008). So it’s much better, and much smarter, to underestimate any potential profits rather than overestimate.
That being said, the exceptions don’t make the rules. And I still firmly believe that when handled strategically, purchasing a home can be a phenomenal investment. And as you can see, the data tends to back that up. Use it wisely. And when in doubt…I’m here to help.
Median Home Sales Prices
*Click the image to see full size version*