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Fauquier Home Sales Projections July 2008
If I knew how real estate in Fauquier County was going “progress” over the next 5 – 10 years, I would become rich over the next 5 – 10 years. However, not having a crystal ball to forecast, I look to history.
Researching real estate history and trends, and there are trends, one finds that “any action causes a similar reaction.” Put into dollars and “sense,” real estate may be dissected into two categories, property value, and money. An example of this may be after a period of rapid appreciation of value, a depreciation of value will follow unless the income of the purchaser has increased at the same percentage of increase.
History indicates that money travels a 5-year cycle. Interest rates will hit a high point and travel to their lowest point within a 5-year period before beginning a “new rise.” Much like “viewing a monitor” of alternating electric current, the flow line oscillates up and down, yet stays within a determined range.
The history of “real property, real estate” travels on a 10-year cycle, with some revision. A property or area will appreciate for 8 – 10 years before “hitting” some resistance. At that point, property will hover with little fluctuation for a 2 – 3 year period, decrease in value, or remain steady prior to beginning a new appreciation cycle.
So, how does this “example itself” in Fauquier County? Reviewing the period 1998 – 2008, the median price of a home rose from $162,500 in 1998 to $309,900 in 2008. Using these figures the “median priced home” appreciated 191% over the last 10 years. (No matter what the “median price” was in 2005, real estate has proven to be a good investment over the last 10 years, and will be a good investment for the next 10 years.)
Purchasing a home today, at 2008 prices should yield the owner a substantial gain in value long before 2018, provide them shelter, and a needed tax advantage.
View All Available Real Estate At www.realestatephd.com
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