Nothing New Under the Sun
We’ve all heard the saying, “There’s nothing new under the sun”. With this quote in mind I thought it interesting to ponder the following historical real estate market quotes.
· “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” Time Magazine 1947
· “Houses cost too much for the mass market. Today’s average price is out of reach for two-thirds of all buyers.” Science Digest 1948 (average price at the time: $8,000).
· “The goal of owning a home seems to be getting beyond the reach of more and more Americans.” Business Week 1969 (average price at the time: $28,000).
· “The era of easy profits in real estate may be drawing to a close.” Money Magazine 1981.
· “If you are looking to buy, be careful. Rising home values are not a sure thing anymore.” Miami Herald 1985
· “Most economists agree…a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was…” Money Magazine 1986.
· “We’re starting to go back to the time when you bought a home not for it’s potential money-making abilities, but rather as a nesting spot.” Los Angeles Times 1993 (Note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since).
· Financial planners agree that houses will continue to be a poor investment.” Kiplinger’s Personal Financial Magazine 1993.
· “A home is where the bad investment is.” San Francisco Examiner 1996.
