Between 1987 and 1999 the average appreciation of a home in the US rose by 3.6% annually. This level of appreciation is considered healthy and standard in a good economy.
During the time of January 2000 through May of 2007 appreciation was at a high of 7.9% annually.
Because the market over history naturally corrects itself and seeks balance, we saw appreciation in the negatives. Between June of 2007 and October of 2011 appreciation was at -5.8% annually.
Recovery to Date:
Over the last almost two years we have seen annual appreciation of 4.7%. This is great news because it indicates a healthy market!
The future is looking bright. If you take a look at what all the experts are saying, we should expect annual appreciation to be at 4.7% annually until 2017. Remember, this is better than the normal appreciation of 3.5%.
What This Means to You:
You can take comfort in knowing that the market is recovering and homes are appreciating at healthy levels! If you are currently a homeowner and are wanting to make a move, now may be a great time to sell. If you are thinking about buying this news should encourage you to start the process as soon as possible as home prices are only going up!