J. Rick Normand
Sedona AZ (April 25, 2011) – That Home You Bought In 1979 Has Lost 8.5% Of Its Inflation-Adjusted Value by Gus Lubin of Business Insider submitted by J.Rick Normand:
Home values have already collapsed to 2003 levels.
But an even more grim picture comes when you adjust for inflation. That home you bought in 1979 has lost 8.5% of its inflation-adjusted value.
From Chart Of The Day:
For some perspective on the all-important US real estate market, today’s chart illustrates the inflation-adjusted median price of a single-family home in the United States over the past 41 years. Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased — increased. That brings us to today’s chart which illustrates how the inflation-adjusted median home price is currently 38% off its 2005 peak. That’s a $100,000 drop.
In fact, a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value (8.5% loss). Not an impressive performance considering that more than three decades have passed. It is worth noting that the median priced home is currently in the bottom half of a price range that existed from the late 1970s into the mid-1990s.
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….is anyone other than me disturbed by the spate of reverse mortgage ads being broadcast on TeeVee aimed at us elderly? Give me one just cause for somebody to do a reverse mortgage? Don’t tell me what you hear on those blasted TeeVee ads. Why not call it what it is, institutionalized loan sharking? It’s a way for the banks and mortgage companies and public and private organizations to cheat the elderly that are easily swayed by “professionals” offering “do you want to end up with no body to take care of you because your children can’t or won’t” and how about the sleezy low down sales gimmick “if you outlive your money and assets and find that you have not enough money to take care of yourself, sign here on our dotted line, because we are philanthropists and we will care more for you than your family if you run out of money while we are responsible for you” scare tactics. How about that practice of hiring “trustworthy famous faces” to promote this horrible financial predatory practice. Where’s the stories about the corruptness of this? I am upset at 74 years of good age watching friends make stupid decisions about the future (my opinion that is). (Really enjoy visiting Sedona each winter)…
Henry, I’m self employed. You would have to shoot me and drag my dead body into an assisted living place. No reason in the US to live in one even if you are poorer than dirt. Best care options are decided by you in your own rented or owned place in every state.