Where might home prices be if the bubble and bust didn’t occur?

Looking at the roller coaster prices of the last ten years on the chart below with data from the National Association of Realtors it is easy to get concerned that prices are getting into dangerous territory again.

Median-Sales-Price-STM-ENG

But if we look at what was normal appreciation from 1987 to 1999… 3.6% per year… and apply that normal appreciation to 2000 and beyond it doesn't look so scary. This chart shows that had we had normal appreciation instead of the bubble and crash, prices would be even higher than where they are now.

Median-Historic-Price-STM-ENG

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis – St. Paul Real Estate Market

HomesMSP Team- SharleneJohnAngela Minneapolis-St. Paul Realtors

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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