December 30, 2008
Happy New Year - Have a Safe Time Ringing In 2009
by Ed Bisquera
For those worried about the economy and their investments, it may not seem like a very happy New Year. However, it is times like these that we should stop and reflect upon our long-term blessings. Worried about home prices going down? Yes, median prices were down to around 180,000 last month. This drop was over 13.0% in one year and represented the largest one-year plunge since the depression. Would you like some perspective? Median home prices were approximately $80,000 in 1990. In other words, prices are up 125% over the past twenty years even factoring in the recent decline. And with lower home prices and record low rates, homes are now as affordable as they have been for the past decade.
The stock market? Down 40% in a year. Obviously stocks are much more volatile than real estate. A drop in a portfolio of 40% in one year has to be unnerving. Here we have another historical perspective. In 1990, the Dow Jones average hovered around 3,000 as opposed to the 8,500 during the final month of this year. This also represents an increase of over 100%. There are many who see tremendous buying opportunities in stocks right now, just as many are crowding auction houses to get a chance to bid on real estate bargains. The message?
...Read the rest of the story here and get access to investment property analysis and mortgage rates
Vancouver, Washington (Clark County) and for all of Oregon, including Portland, Beaverton and Gresham
Read about my report on 2.0% mortgage rates in my previous blog post here
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