In today’s market, you can purchase a house for less than half of what you paid a decade ago. Why does this happen? Is this just a trend that will pass? Will we ever see a time when homes are purchased for the price they were paid for when they were built? Many of the statistics below are shocking and even hard to believe but in reality, the statistics are true and correct as of June 2009.
1. In a 2006 home, you could find furniture worth $400 to $800. Today, you can find the same furniture for about $300 to $500.
2. Today’s homes have more electronic equipment in them than ever before. In a home, you can find a computer, television, sound system, telephone sets, personal computer, laptop computers, and others. If you compare the cost with what you could find in the early 2000s, you will be surprised.
3. Today’s homes also have jewelry, paintings, and other artwork worth $1,000 to $5,000. Do you know what it cost you to replace all that a decade ago? $500 to $1,000.
4. A home that cost $250,000 in 2004, could be worth $350,000 in 2009. The good news is you could have built that back in 10 years. The bad news is you would have doubled your money just in paying your mortgage.
5. If you were to remodel, today you could find that your home costs $150,000 or less than what you spent to build it. The cost to maintain your home is also $150,000.
6. In a 2005 home, you could find the carpet for $90. Today, it could be about $150. If you look at the sofa, you could find $500 to $700 worth of value. You could find a comparable new couch at a deep discount of $300 to $500. The difference is not due to depreciation. The difference is the increase in the quality of new goods.