Everyone Talks About The Median Home Prices In Our Areas
They are getting back close to or above the peaks set back in the 2007/2008’s. Median home in Orange County for April was $733,000.00. That is only $1,000.00 below 2007’s record.
However, There Is One More Correction That Should Be Mentioned
If we adjust that amount for inflation, it is still $85,666.00 below the peak.
That is still a fair amount of change.
We Old-Timers Remember Too Much About The Past
We expect prices to never change.
When I got my license in 1961, a $1M producer would get a commission of let’s say, 30% of the $60,000 in commission or $18,000.00. Does not seem like much until you note that the average house then would cost $12,550.00 so he or she could buy almost one and one half houses.
This Is A Big Problem For People Who Are Now Retiring And Living More Years Than Anybody Ever Imagined
What was good money in 1961 is not good money in 2017 on retirement.
What is good money in 2017 will not be so good if you will be retiring many years from now.
The average rent in 1961 back then was $110.00 a month and now the average rent for assisted living can run around $4,000.00 per month.
A new car back then was $2,849.00, Harvard Tuition was $1,250.00, postage stamp were $.04, milk was $.25 a quart.
What Does This Mean Now?
I see so many people struggling because they retired many years ago, and now are facing severe financial problems.
Get some good advice about your future years, for inflation has not lost many battles. That is whom you will be battling.
How about Real Estate, Real Estate, Real Estate? It is tied to inflation, and there is another thing called leverage.