Looking in a Different..Era?
So let’s just pretend that for today we’re not only going to look at a different market area, we’re jumping back to another time. Ever wonder how you’d stack up to some of the typical Buyers and Sellers from the past? Read on to find out!
The 70’s: Peace Love and Property
From about 1969 to 1979 the home housing market saw the largest and fastest growth it had seen for well over a decade. The typical 70’s Buyer could purchase their home for about $32,000 with $3,000 down and a mortgage interest rate of 6.9% (interestingly still higher than most of the averages used with the newer ‘Stress Test’ rules today). Their average household income was approximately $37,750 combined. By the time their mortgage was paid and accounting for inflation by today’s standard that same property would cost $572,675. Not bad for a 3 bedroom 1 bathroom side-split.
The 80’s: Totally Rad Real Estate
By 1984 Reagonomics, Rubiks Cube, and the Real Estate Market had all gained a huge chunk of our daily lives. Cell phones were the size of bricks, an Apple MacIntosh personal computer would cost you $2,500 (or $5,800 today), and buyer’s were spending roughly $72,000 to get into their dream home. Not bad until you realize the average mortgage interest rate was a whopping 21.5% ! With household income of about $52,135 this meant by the time the debt owing was paid off this put their properties to more than 8 times their annual income! By today’s standards that same place would price out to about $1,092,420.