by triguy128 on Sun Apr 29, 2012 10:48 am
It's been entertaining looking through our abstract.
Don't forget, that big rise in home values you see in the 30's & 40's and again in the 70's also correlated to a big bump in inflation over the same period. SO adjusted for inflation, the value of the structure didn't rise as much. The big gains occuring when there were huge swing in demand. Home supply is not very elastic since it takes time to acquire land, capital and construct homes. SO in the post WWII boom, there was a shortage of homes and a sudden increase in incomes and standard of living. You saw the same in the previous decade before the housing market tanked. Low rates and increased access to financing created strong demand while salaries had also increased. OF course rates were artificially low (did not reflect true risk), a lot of spending was done on credit... so the market and economy went "pop"... and the bubble burst.
1925 Neo-Classical
Previous home - 1968 single story Ranch/Colonial, 1200sqft - 11 windows
Current home - 1925 2 story Beaux Arts Neo-classical overlooking the Mississippi River, 3200sqft - 48 Windows