Tags: Housing Blew Away Stocks Over Last Decade

Housing Blew Away Stocks Over Last Decade

Thursday, 09 Dec 2010 09:48 AM

True or false: Housing is the worst investment you could have made in your whole life.

Answer: Not if you’re a New Yorker. Or in Los Angeles. Or even Washington, D.C.

New York home prices rose by a hopping 6.2 percent a year during the last decade, according to a new study by housing-analytics firm Radar Logic. Homes there now cost 91 percent more than they did in 2000 — despite the horrific crash, reports Forbes.com.

It helps if your neighbors were getting richer and bidding up prices around you, as happened on Wall Street during the period. It’s boom logic, but it still worked for buyers of 10 years ago.

Angelenos saw an 85 percent total return. People in our nation’s capital gained 72 percent. Compare that to Dow stocks, which have returned about 6 percent over the whole 10 years. Not annually, but over the entire decade.

The average gain for U.S. homeowners was still pretty high, comparatively, rising 58 percent in the decade among the biggest 25 metro areas. The average annual housing gain was 4.3 percent per square foot.

Surely there were losers, right? Absolutely. Detroit now costs 33 percent less than a decade ago. Las Vegas is 11 percent cheaper. Cleveland was down 9 percent.

Hold on to your hats, though. Home price data site Zillow.com says it expects home values to fall by $1.7 trillion in this year alone. That’s an acceleration from the $1.05 trillion loss last year, Zillow says in a statement.

Blame foreclosures and the end of tax breaks, the real estate site said.
Home prices peaked in 2009 at a total value of $9 trillion of American wealth, according to Zillow.

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True or false: Housing is the worst investment you could have made in your whole life. Answer: Not if you re a New Yorker. Or in Los Angeles. Or even Washington, D.C. New York home prices rose by a hopping 6.2 percent a year during the last decade, according to a new...
Housing Blew Away Stocks Over Last Decade
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2010-48-09
Thursday, 09 Dec 2010 09:48 AM
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