Comparing the real estate market in 1988 to now is more than just a nostalgia trip
I just read an article in curbed.com about the annual State of the Nation’s Housing report from The Harvard Joint Center for Housing Studies and found the intel on the real estate market interesting. This report, which is in its 30th year, offers a view of the changes in the U.S. home and rental market. It tracks everything from the vibrancy of the housing market to prices: measuring the statistics against former years.
Idealism vs. Reality
It’s easy to wistfully imagine the housing market in 1988 and want to jump on your own DeLorean Time Machine. For many homebuyers, the idea of going back in time is alluring. That’s when it seemed easier to buy a home due to fewer government policies.
Here are some of the report’s findings:
Categories marked with an (#) use 1989 data, and those with a (*) use 1990 data from Harvard Joint Center for Housing Studies
The Good, the Bad, and the Road Ahead
Before you dream of traveling back in time yourself, you need to consider a couple things about the housing market back then. For starters, interest rates hovered around 10.5. Homes were smaller as was the student loan burden. The market wasn’t experiencing the serious supply challenge or the rise in rent for that segment of the population.
You don’t have to go back in time to check out the good news about the real estate market today. In a recent blog, I shared how economists say real estate prices will continue to grow in 2018.
If you’re considering buying or selling in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities, please call at 805.886.9378 or email me at Cristal(at)montecito-estate(dotted)com. I’ll happily add your listing to my portfolio of fine homes in the area and simultaneously find your new dream home for your family.