“How long did it take for your home’s value to double the first time?”
That was a question posed in a social gathering I was attending last weekend.
That answer depends on when you bought your house. It seems like in the past ten years, home value appreciation has accelerated even more, especially since COVID. Home prices seem to go up decade by decade without dipping.
CNBC reported median house prices in different states in 1940, 1980 and 2000 and here are the statistics for California*:
Median home price in 1940: $36,700
Median home price in 1980: $167,300
Median home price in 2000: $211,500
If you bought a home in 2000, it is more than likely that your home has doubled in value. If you bought a home in 1980, it may have doubled or even tripled in value.
There isn’t a clear formula on when a home’s value doubles because it depends on where a home was built, what the economy was doing, improvements that were made to a property, and other factors.
For example, many homebuyers who bought in Fontana and Rancho Cucamonga in the late 2000s are pleasantly surprised by how much their homes have appreciated in value. Oftentimes communities that started out as entry-level markets develop and appreciate as urban sprawl pushes out the farthest suburbs.
There’s a reason why there are songs like “Buy Dirt” and sayings like, “Buy land, they aren’t making it anymore” (attributed to American writer and humorist Mark Twain). Many big investment companies invest in real estate and single family residence rentals because they know the demand for homes is high.
What are you investing in? Are you currently saving up to invest in your first home? Do you own your own home and are you looking to expand your real estate portfolio and buy an income property?
We are REALTORS who helps home buyers, home sellers, and every day our goal is to help educate, guide, and advocate for homeownership.
Reach out today if you want to get a headstart on your real estate goals this summer!
