4 ms·

I don't understand. Housing has been going up steadily for the past decade. 2007-2010ish was the only time it decline, and 2018-2019 had a flat region for some

I don't understand. Housing has been going up steadily for the past decade. 2007-2010ish was the only time it decline, and 2018-2019 had a flat region for some places (not where I live though). https://fred.stlouisfed.org/series/MSPUS https://fred.stlouisfed.org/series/MSPUS

lotsofpulp 4y ago
The disconnect is because there are very large regions of the US where land price had stagnated or even went down in price for the past few decades, but there are also very large regions of the US where land price increased or skyrocketed. Many people experienced different things. Of course, the regions where most people were moving to and where most house sales occurred experienced higher land prices, but the regions where land price was stagnating or declining would have fewer sales in the first place and hence not reflect in the data, but the people there would still be experiencing it. So you just have large numbers of people experiencing different price movements depending on where they live.
mywittyname 4y ago
Because you're looking at the USA market as a whole. The regional view tells a much better story because then you don't have movement in one region offset that of other ones. https://fred.stlouisfed.org/graph/?id=MSPNE,MSPMW,MSPS,MSPW https://fred.stlouisfed.org/graph/?id=MSPNE,MSPMW,MSPS,MSPW, You can pretty clearly see that most regions there were long periods of housing stagnation and decline, followed by quick price jumps, then back to stagnation. And look at how wildly the NE region fluctuates. It regularly moves 10% up or down in any given year. And sometimes much more, prices moved from $403k to 566k in one year (2016->2017). Whether you did well or not in your housing purchase comes down to luck. Yeah, in aggregate, over long enough time periods, housing does well. But your individual situation will vary dramatically.

lotsofpulp 4y ago

The disconnect is because there are very large regions of the US where land price had stagnated or even went down in price for the past few decades, but there are also very large regions of the US where land price increased or skyrocketed. Many people experienced different things. Of course, the regions where most people were moving to and where most house sales occurred experienced higher land prices, but the regions where land price was stagnating or declining would have fewer sales in the first place and hence not reflect in the data, but the people there would still be experiencing it. So you just have large numbers of people experiencing different price movements depending on where they live.

mywittyname 4y ago

Because you're looking at the USA market as a whole. The regional view tells a much better story because then you don't have movement in one region offset that of other ones. https://fred.stlouisfed.org/graph/?id=MSPNE,MSPMW,MSPS,MSPW https://fred.stlouisfed.org/graph/?id=MSPNE,MSPMW,MSPS,MSPW, You can pretty clearly see that most regions there were long periods of housing stagnation and decline, followed by quick price jumps, then back to stagnation. And look at how wildly the NE region fluctuates. It regularly moves 10% up or down in any given year. And sometimes much more, prices moved from $403k to 566k in one year (2016->2017). Whether you did well or not in your housing purchase comes down to luck. Yeah, in aggregate, over long enough time periods, housing does well. But your individual situation will vary dramatically.