US Real Estate Directory

ecacofonix · Junior Member Joined: 20 Jun 2007 Posts: 1

One can argue that real estate prices can crash and hence real estate can go down in value. But this is usually in the short run (though not always, as has been seen in the case of Japan). In the long run, as our needs increase and the wealth and affordability in the world increases, while the amount of saleable real estate remains the same, isn’t it logical to assume that real estate prices will almost always increase in the long run?

Now, this is what I think and I thought this could be a question I can throw to the board for the members’ responses. Of course, even if it is agreed that real estate will always increase, that is no reason to make it the best investment because one needs to compare it with the other investment options available. But if it can indeed be shown that real estate almost always increases in the long run, it might be become an even more interesting investment option for many conservative investors – regardless of whether it performs better or worse than more volatile markets such as stocks.

What are the opinions of the board members about this? Do you feel that it is rather obvious that real estate should always increase in the long run (based on economics as well as based on empirical data) or do you think there could be alternative hypotheses?

I look fwd to your inputs

NS from RealPedia - RealEstate Directory @ billdoll.com/dir/r/biz/re/re.html

ScottsdaleHomes · Junior Member Joined: 03 Aug 2007 Posts: 11

I think time has shown that real estate is a great investment. My opinion is, it will over time consistently appreciate. People always need a place to live, and populations are increasing by the minute.
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Landwatch.com · Junior Member Joined: 16 Jan 2008 Posts: 3

I fully agree with you that real estate in the long run is a profitable investment. Though in the last few months we have seen major falls and slumps, still this is going to be a short term behavior. With time the value of your property and mainly land will always rise.

bigtoe · Junior Member Joined: 04 Jul 2007 Posts: 14

While it might suffer through periodic downturns real estate always costs more in the long run. Talk to anybody who has been around for a while anywhere in the country and they will tell you stories about how cheap real estate used to be.
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Gary · Site Admin Joined: 28 May 2006 Posts: 276

I also agree, we have had some problems here in California recently but I also think it is just short term. In the long run your investment will pay off. Great topic for Open Chat !!
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kensmith · Moderator Joined: 07 Jun 2006 Posts: 105

While real estate is local and local factors can effect the home prices over the long term home prices will increase. Population increases, inflation, and many other factors will force home prices up on average over the long term.
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