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The year Ronald Reagan became the 40th president of the United States the median home price was $52,739. Sounds like a dream, but what would that mean in today’s dollars? A special report from the team at 24/7 Wall St gives insight into how home prices have really changed through the years.
People love telling stories about how a home purchased years ago for next to nothing is today worth hundreds of thousands of dollars or more. Truth is, those tales might be overestimating real estate as an investment. While a home bought in 1930 for around $6,000 may be worth roughly $195,000 today, when adjusted for inflation, the appreciation is not as impressive as it seems. Since 1930, inflation-adjusted home values have increased by a modest 127%, or less than 1% each year.
24/7 Wall St. reviewed real estate data from the Case-Shiller Home Price Index and the U.S. Census Bureau. According to research conducted by economist Robert Shiller, major increases in real estate values took place over two distinct periods: the post-World War II housing boom, and the subprime housing bubble leading up to the 2007-09 recession. Outside of these spikes, national home prices have remained relatively stable.
Several factors after World War II, during the first major increase in home prices, drove up housing demand. Government rationing during the war had caused a limited supply of homes, and the 1944 G.I Bill, which subsidized home purchases for millions of soldiers, further increased demand. While the construction of new homes increased considerably at this time, it was still outpaced by demand, and home values spiked.
Unlike the housing bubble that occurred 60 years later, the post-war housing boom stabilized. By the late 1940s, the national median home price had plateaued around $130,000, where it would remain roughly unchanged for the rest of the century.
Another housing boom began in the early 2000s. Easy access to credit, favorable tax policy, low mortgage interest rates, and an increased enthusiasm for homeownership drove up demand for housing. The homeownership rate peaked at 69.0% in 2004, up significantly from 47.8% in 1930. When many of these homeowners could not afford to pay their mortgages, foreclosures spiked and home prices plummeted.
Read the full article and find out how much a home cost the year you were born: How Much a Home Cost the Year You Were Born – 24/7 Wall St.
High quality homebuilder Lennar will celebrate the Grand Opening of its newest community, Berkshire, in Chino on Saturday April 2. Members of the public and potential homebuyers are invited to come out for this event to tour these beautiful brand new homes.
“We cannot wait to present this collection of new homes for sale to the public,” said Tara Conklin, Vice President of Sales and Marketing for Lennar Inland Empire. “We have listened to what homebuyers are looking for and offer a variety of home-styles to suit a variety of needs with this community.”
Berkshire has four distinctive floorplans to choose from including two of Lennar’s special The Home Within A Home® plans. The Home Within a Home model available at Berkshire boasts approximately 4,271 square feet, five bedrooms, two stories and three-and-a-half bathrooms. The 3571 The Home Within a Home® features a spacious single story layout with up to five bedrooms, 3,571 square feet, three-and-a-half bathrooms and up to 4-bay split garage.
Lennar’s The Home Within a Home The Home Within a Home® is perfect for multigenerational or dual living situations because it includes an attached private suite complete with its own separate entrance, living space, kitchenette, bedroom, full bath, walk-in closet and pantry. Lennar designed this unique floorplan to be incorporated into the main home in a way that allows it to be a separate space, but also offers direct access to the main house, depending upon each individual family’s needs.
In addition to The Home Within a Home plans are two distinctive floorplans for buyers to choose from that range in size from approximately 3,240 to 4,830 square feet of living space, three to five bedrooms and two-and-a-half to four-and-a-half bathrooms. Every Lennar home comes loaded with luxurious upgrades at no extra cost to the buyer through their Everything’s Included® package, which puts stainless steel appliances, granite slab countertops, walk-in closets, home theater pre-wire in great room, crown molding at select locations, water and energy saving fixtures, home automation and more into every home they build.
Berkshire is located at 14441 Birmingham Drive. For complete directions visit Berkshire online or call (888) 203-9186.
With hundreds of communities nationwide and homes designed for first-time, move-up and luxury homebuyers, Lennar has grown to become one of the nation’s leading and most respected homebuilders and proudly remains steadfast in their commitment toward quality, value and integrity. Lennar has a longstanding history of building exceptional homes in only the most well planned and desirable locations throughout the country.
Lennar will celebrate the Grand Opening of their newest community in the city of Temecula, Marbella at Terracina, on Saturday April 2. With both single family and multigenerational floorplans to choose from, prospective homebuyers and members of the public are invited to come out and tour these stunning new homes.
“We are thrilled to be presenting these new homes to the public,” said Tara Conklin, Vice President of Sales and Marketing for Lennar Inland Empire. “We’ve combined beautiful, modern floorplans with a highly sought-after location in Temecula near Red Hawk, where kids will attend the great schools within the Temecula Valley School District.”
Marbella offers three distinctive floorplans to choose from, including Lennar’s The Home Within A Home® plan, also known as the Superhome. This model was designed to accommodate multigenerational families and provides approximately 4,121 square feet of living space, up to 7 bedrooms or an optional private retreat, a three-bay garage and four-and-a-half bathrooms. All The Home Within a Home models boast a private suite that’s attached to the main home with it’s own private entrance, living room, kitchenette, bathroom, walk-in closet, and in select models like the 4121 Superhome, an additional bedroom or optional retreat.
“We have had such great success with The Home Within a Home and it’s always amazing when we are able to put a multigenerational family into a modernized home that often exceeds their expectations, wants and needs,” Conklin added.
The remaining two floorplans available at Marbella also offer a variety of home choices, from one- to two-stories, approximately 2,820 to 3,823 square feet, four to five bedrooms, three to three-and-a-half bathrooms and two- to three-bay garages. These spacious homes come loaded with upscale amenities included at no extra cost to the buyer through Lennar’s Everything’s Included® package. Marbella residents will enjoy stainless steel appliances, granite slab countertops, upgraded cabinetry, crown molding at select locations, home theater pre-wiring in great room, energy saving features, home automation, and water smart fixtures that save homeowners money each month all at no extra cost.
Marbella is situated in the heart of Temecula’s wine country, giving residents a host of ways to enjoy their free time from outdoor recreation areas, wineries, world-class spas, restaurants, entertainment, shopping and more.
Marbella is located at 45766 Cebalo Street, near Vail Ranch Parkway. For complete directions visit http://www.lennar.com/new-homes/california/inland-empire/temecula/marbella-at-terracina or call (855) 462-9037.
With hundreds of communities nationwide and homes designed for first-time, move-up and luxury homebuyers, Lennar has grown to become one of the nation’s leading and most respected homebuilders and proudly remains steadfast in their commitment toward quality, value and integrity. Lennar has a longstanding history of building exceptional homes in only the most well planned and desirable locations throughout the country.
Myth No. 1: I shouldn’t check my credit score too often because my score will drop.
The Truth: There are two different kinds of inquiries — soft and hard. Checking your own score is a soft inquiry. Soft inquiries cannot be seen by creditors and do not affect your score. The same is true if a potential employer checks your credit. However, inquiries made for credit cards, loans, and mortgages on a new home will be shown to creditors and are counted in your score.
Myth No. 2: I should close all my credit cards because debt is bad!
The Truth: Debt should be managed carefully at all times, but it’s important to understand what makes up your credit score. Thirty percent of your credit score is based on your utilization – how much credit you are using compared to what is available. So if the card you are closing has a balance, your score will most definitely drop when you close the card. Plus, the average age of your credit makes up 15% of your score, so if you close a card it can drop your score in a big way! When thinking about purchasing a new home, it’s important to show good utilization and a long credit history.
Myth No. 3: Bankruptcy will follow you forever.
The Truth: In terms of credit reporting, bankruptcy is not forever. Filing a chapter 7 bankruptcy will remain on your credit report for ten years. A Chapter 13 bankruptcy lasts on the report for seven years. Bankruptcy doesn’t always prevent you from buying a new house, but it does affect your credit score.
Myth No. 4: Getting married to someone with bad credit will ruin your credit!
The Truth: This is only the case if you own something jointly, like two names on a mortgage or if you add that spouse to a credit card. A credit card held only in your name will not change your spouse’s credit score. The only exception to this is if you live in a community-property state. In these circumstances, all debt acquired during a marriage is joint debt, regardless of whose name is on it. Tennessee is not a community-property state.
Myth No. 5: It won’t affect my credit if I’m just a cosigner.
The Truth: Wrong! When cosigning, you accept just as much responsibility for the debt as the other party signing. This will show up on their credit AND yours, so be cautious when cosigning for a debt. If you plan on purchasing a new home in the next year, be very careful what you add to your credit history!
The contents herein are provided for informational purposes only. You should consult your own accounting, legal and tax advisors to evaluate the risks, consequences and suitability of any transaction.
