Sometimes, I need to wonder about my timing with respect to Real Estate.
In September 1989, we bought our house in North Hills, CA (“Natick”).
According to today’s Daily News, “In May of 1990 we could look back and say the market tanking started in November 1989.”
We bought our house in Northridge, CA (“Donna”) in June 2005. According to the same article, “Reports last week from the Southland Regional Association of Realtors and DataQuick information systems showed that the annual rate of appreciation of previously owned homes sank into single digits here and across Los Angeles County for the first time since 2001.”
Translation: Although we won’t be seeing the same price drop we saw in 1990, we’ll be seeing single-digit appreciation for a while to come. Let’s just hope that interest rates don’t go back to the 1989/1990 levels, when 10%-12% was a good loan.
