real estate will rise faster and bigger in the future than it has in the past?

Question

some people say the next boom is alays bigger then the last.

and they say real estate ina 5-20 year period will ALWAYS rise in value in the long term, calfironia

likely to be true?
there are alot of assumtions and varibles
but in a nice stable area, i feel real estate will ALWAYS rise in value in the longterm.

for single family homes

Answer 1

Yes for the most part the value of housing does indeed trend upwards, just not at the paces that have been seen over the last 10-15 years. Right now a correction is taking place so in many areas housing is actually going down in price, WHy? Wages have not kept up with the escalating costs of a home, taxes, utilities, making them less affordable, add the interest rate hike and many are losing their homes.

Answer 2

Real estate is driven by interest rates.

Interest rates move in 20 year cycles.

The bottom in rates was 5% in 2004.

Rates are now in a 20 year cycle GOING UP, not down.

This will adversly effect Real Estate.

Terry Smith
http://www.Welcome2Arizona.com