The 10 Year Median Price Story - Quite a Ride!

The Big Picture

Charts are beautiful. They offer us an efficient visual picture of otherwise boring data and detail, and from a glance, we can quickly see major trends and patterns that would otherwise take hours to assimilate.I would invite you to glance at each of these charts, see what you perceive from those glances, then return to the text below to follow me through the last 10 years.

The Bust

The year 2007, the first year presented on each of these charts, was the year of the bust. By July, 2007 the market had stalled. Buyers were leaving the market, inventories were swelling, real estate professionals were wondering, sellers were frantic, and none of us knew where the end might be.

The Next 3 Years

Could it possibly get any worse? It seemed that with each passing month we learned something new about what had been going on in the mortgage lending industry, and by now the buyers of mortgage backed securities had been burned so badly that they left the market entirely. The financial backbone of the housing industry was broken.

Then Came the Turn

Tiny details began to show positive signs in the market in late 2010, and the market seemed to continue to ponder its own success throughout 2011, but by early 2012 we knew that the market had found the bottom and was now beginning the turn. It was coming back.

And Come Back It Did!

Who could have forecast what the market would do following the return, but in retrospect, it was understandable. The law of supply and demand would prove king. The market began to regain strength, inventory levels were at the lowest in years, and buyers were returning with an economy that was rapidly recovering.

Where Will It Go?

The general consensus is that we have growth potential still left. Some will say we are good for a couple more years yet, others won’t say. Our crystal ball was sent back to the factory in 2007, and even the factory hasn’t been able to fix it for us. We are probably counted amongst those who won’t say.

Enjoy the Picture the Charts Portray

From bust to bottom to recovery and then boom, the charts presented below portray the picture better than thousands of words might. Thank you for your time.Bill Badgley