This graph from Robert Schiller is a little sobering. Basically it shows that from 1890 until 2000 home prices have only gone up about 20%. But from 2000 until 2006 they doubled. What about the fact (I guess its now a myth), that homes always appreciate in value? So where does it look like prices are going to go from here? They are already going down, but just how far? I’ve mentioned before that it was this remarkable increase in home values that drove the Vallarta (and many other second-home markets) real estate market over the past five years. Looks like the US market, and therefore the Vallarta market, have a little more adjusting to do, if history serves us right.
USA Home Value Chart