An Interesting Look at Where Housing Prices are Today

Filed under: Market Comentary

In today’s video, I’m sharing data from a presentation that we do every month. This information shows an interesting perspective to show the run-up in prices that we are seeing recently. I think it makes a strong justification that maybe the market is where it should be right now.

20 Years of Home Value Data

The chart shows numbers from July 2002 through July 2021. The blue line shows the price activity over the last 20 years. You can see the run-up in 2006 and the following over correction in 2008. Since then, it has been trickling back up until we saw big increases in the last 12 – 18 months.

4% Growth Rate in Real Estate

Here is the interesting point: the red line represents a 4% per year growth rate for the last 20 years. When you see how far off the 20-year data curve we went in 2008, then it’s a good indication that something isn’t right. Since that point, we’ve been hanging below the 4% trend until the recent year.

The blue line is finally above the 4% per year trend line. A side note: 4% per year is viewed as a healthy market.

Watch to See What Happens

Now, what is happening is that current prices are beyond that curve. So, at this point we need to watch and see what happens. A lot of people are predicting that we will see a flattening in value, and that makes sense to me.

I think it’s something to pay attention to – just another way to think about what is happening in the market. Obviously, it isn’t a perfect predictor of what to expect, because you can see how far off the curve that numbers move sometimes. But my takeaway is that when we are close to the standard line of 4% per year, then it is probably an indicator of the health of the real estate market.

For more information, you can click here to view the full report. Call if you have questions or you would like an explanation.

Do you want to learn more about buying a home in our current industry? Reach out to me to discuss your financing options. I’m always here to assist with mortgages and refinancing.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email