does real estate double every 7-10 years?

Question

would you say the price of my home 500,000 will double 7 or 10 years from now to almost 1,000,000? for california

Answer 1

No. North Texas in the late seventies was on a track to double every 4 years, then slowed down in the early 80's to double every 10 years, then prices went down in the late 80's and early 90's. Since 1995 I think we have averaged about 3% to 5% appreciation a year.

I know most of California has been wonderful for several years but with the combination of low affordability and banks cutting back on high risk loans, there may be some slow years ahead out there.

The deal is that real estate is very local. Your neighbors house may go up less that yours because it does not have as nice a view or something.

Answer 2

that's a difficult question to answer.
If you go back a few years in the 1980's, Japan was going through an exceptional real estate market and only to see it crash in the 90's. Only now are prices starting to appreciate.

It's difficult to see if the same will happen to the US and California and you might not want to hear that prices are over inflated in CA, FL and parts of Arizona. Most likely, over the next year or so prices will depreciate then rebound at a much slower pace. Probably 3-4% I wouldn't look for prices to increase by 20-40% a year, since the real cheap money is out of the market (we're still at historically low rates) and most financial institutions are tightening the lending requirements.

I'm in the same boat you are as I currently reside in the over inflated market of lovely Florida. (there are 9 houses for sale on my street alone)

Answer 3

No.Roughly 5-7 % ayear,adjusted for inflation...but this is not a savings account,it doesn't compound,so the 7-10 rule doesn't apply...[7% compounded doubles every 10 years,10% doubles in 7 years]

Answer 4

impossible to generalize. First real estate is local and second its dependent on job growth and interest rates among other variables. Finally, it has cycles just like any investment and can go down as well as up.
Look at the long term price history in your area and ask yourself if job growth is good where you live.

Answer 5

It depends on the location but I doubt if it will double in that period of time. Right now property is not selling real good but it may increase in the near future.

Answer 6

Probably not. Some individual property might, but not most of them. There was a time in CA when that had a better chance of happening, but not now.