Is the fluctuation in real-estate values normal?
Throughout the history, different social and economic events have had significant impact on our lives and the cost of living our lives.
One of those things that we need to be aware of, is the cost of real-estate properties that we buy and sell.
In good years with low inflation and relative security the real-estate market is expected to increase between 1 to 4%. However, when there is some turmoil in horizon the cost of real-estate will go up or down depending on the situation. But the history has shown us the generally the real-estate prices, like any other things we buy and sell, will eventually stabilize.
Somehow there seem to be some correlation between real-estate and stock market. During those years that stock market is going vertically up, it seems on a daily basis, the price of real-estate is going up too. And those bad years for stock market we see that real-estate prices are going on a horizontal path as well. However, the bottom line is that real-estate has been proven to be a good investment on a long term and a very stable one for those who want to augment their retirement income.