Real estate agents often talk about the idea of “typical” or “normal” appreciation. More often than not, this comes when talking to home owners who are determined to wait “until the market gets better.”
But what does normal appreciation look like? Here’s the chart for the Peoria real estate market over the past 10 years …
It’s pretty easy to see where things went sideways to both the upside and the downside in 2005 and 2008, respectively. But take a look at the numbers to the far left of the chart.
What I tell people is to expect 3 to 5 percent annual appreciation; those figures tend to bear this out. Some months are better than others but, frankly, real estate isn’t something that should be viewed on a month-by-month basis (and probably not even on the basis of a single year at a time, either.)
If you’d like similar numbers for other cities here in the Phoenix real estate market, let me know and I’ll be happy to oblige.