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What to expect for home appreciation
Hi Neighbors,
When you are purchasing or remodeling a home one of the things to consider is appreciation.  What will the value of my home be in 5 or 10 years?  In the past couple of decades, we've seen some incredible swings.  Overall during the past 7 or more decades home prices have kept pace with inflation and most people buying a home did so because of life style reasons rather than as an investment.  The Los Angeles Times recently publlished an artlce that sums up what some economists are predicting over the next few decades.
Housing Economists Predict Slow Growth The fundamentals that drove the increase in housing values for the last century - increasing population, incomes, and household wealth - may not follow in the United States in the future. Some housing experts speculate this will change the economics of homeownership.Over the next few decades, "We can expect a gradual rise [in home values], but not the bonanza we've become accustomed to between the end of World War II and 2006, and especially the last 20 years," says Robert Reich, public policy professor at UC Berkeley and U.S. Labor secretary in the Clinton administration.The reasons for the change include ... more

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