Housing Prices Can Go Down
CNN Money has an article that reminds us that real estate investing is not always a sure thing. House prices can, and do, go down at times.
When listening to real estate investment guru’s, one can get the impression that it is impossible to lose money in real estate. But here are some examples:
- Los Angeles house prices fell from $222,200 in 1990 to $176,300 in 1996
- Austin hose prices fell from $109,000 in 1986 to $81,200 in 1990
Real estate may be less volatile and risky than other investments, but it is not fool proof. This is just a reminder to be careful when investing in real estate. As the article says:
Before they purchase a home, buyers better figure on scenario of many years of little or slow home-price appreciation. Counting on home price increases could be a big mistake.