Want a largely risk-free California home purchase? Own it for 12 years
Source: Lake County Record-Bee
Buying a home is generally a long-term investment, but how long does one need
to keep a home in order to increase one’s odds of seeing the price increase?
This op-ed discusses analysis by a Southern California business columnist,
Jonathan Lansner, of home price trends in the state since 1987.
He found that while the majority of one-year, two-year, four-year, or even eight-year periods yielded price increases, 30 percent of one-year periods saw prices fall, and 27 percent of four-year periods also showed decreases. Even owning a house for eight years wasn’t foolproof because 21 percent of eight-year periods saw prices decrease (while 79 percent saw prices rise, even as much as 61 to 214 percent). Since 1987, Californians who owned a home at least 12 years saw no price declines, and the average price gain was 94 percent. There’s no guarantee that this historical trend will predict the future, but it reinforces the benefit of thinking long-term.
Read the whole article from Jon Lansner (jlansner@scng.com) Orange County
Register.
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