Property Management Blog

Real Estate Values Headed Up Until 2024

SGI Staff - Saturday, April 18, 2015
Property Management Blog

One expert believes that home values will increase over the next 9 years based on research into centuries old cycle.

Philip Anderson is a bona fide expert on real estate cycles. His book, The Secret Life Of Real Estate And Banking, is 464 pages of the most in-depth historical analysis of real estate cycles you can read literally anywhere, but it ain't light reading.

Why Real Estate May Be Headed Up

While there is not such thing as a magic crystal ball into the future, regardless of what certain 80's Tom Hanks movies would tell you otherwise, history does tend to repeat itself and that's what Philip Anderson is banking on. He says, among other things:

  • Since the 1800's, real estate has been on a predictable 18 year cycle in the United States.
  • Real estate in the U.S. bottomed out in 2010 and will now head up for 14 years, approximately until 2024 when it will be due for a correction again.
  • What causes the cycles seems to be different in each cycle, but a leading factor is how banks set lending policy.

What does this mean for you?

If you agree with him and think real estate is headed up, up, up… then you should:

  1. Buy real estate as it's only going to increase in value.
  2. Rent out real estate that you own and ride it out to a higher selling price.

You could read his whole book (Check out his book on Amazon)... or you can get a taste of his views by watching this 7 minute video we have conveniently posted here for you :) [embed]https://youtu.be/TRR7eT8UH0g[/embed] Here is a graphic image that explains his views, relating the cycle to a clock face: Anderson 18 yr real estate cycle