About a year and a half ago Robert Shiller predicted that the appreciation for housing would remain low, at around 1.1% per year, for the next five years. Well known real estate enthusiast and mentor David Kohler responded to that prediction with the following: Shiller is wrong – again!! We are on the verge of the biggest real estate boom in history! NOW is the time to re-balance your portfolio and ‘leave the shills behind’!!
David’s strong feelings about another real estate boom in the works comes from the United States currently holding over $60 trillion in paper investments (stocks, bonds, mutual funds, 401Ks, currency, etc.) and the increasing urge to move it more into commodities like real estate. The US has currently been trading only around $1 trillion in real estate a year. That figure has huge potential for increase relative to the amount of paper that could be transferred.
Perhaps somewhere in the middle is where the present real estate cycle will end up. One thing is for sure, David’s response to Robert Shiller more accurately follows the numbers that the current market is producing. Santa Barbara’s year-to-date median home price is up now 15% over last year, from $802,500 to $929,000, and the median condo price is up 20%, from $400,000 to $480,000.
I look forward to keeping you up to date on the most current real estate trends, as well as property inventory, and appreciate your inquiries.