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If you are still waiting for a residential disaster, a Reddit real estate broker thinks you are wasting your time – and possibly your shot in possession of a home.
In a post that caused hundreds of answers, the broker wrote: “This $ 600,000 home you are worried about buying 7% – it will eventually be over $ 1 million.” His reasoning? Real estate is “inflation” and people who are bankrupt in a crash are “flawless”.
He said he started working in real estate before the market crash in 2008 – which he called a “big joke”, arguing that while prices decreased about 20%, they quickly recovered and climbed over 100% in the coming years.
“I hate you to burst your balloon,” he added, “But there is no” balloon ” – and there will never be.”
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He added, “I just hate to see people get rid of and then they can never break the cycle because they waited too long.”
The comment was part of the housing housing, part of the doom for tenants and part of the economic philosophy. His big argument? Real estate is not like the stock exchange. You do not bet on variability or vibrations. You buy physical things – timber, work, land – all of which, according to him, will only be more expensive over time.
So, is he right?
Well, kind. But also … not exactly.
Yes, real estate tends to move with inflation. This is one of the reasons for investors to flow to property when the dollar weakens – tangible assets often keep their value. And yes, the price of building materials has increased in the last few years. The prices of timber, for example, almost tripled during the pandemic. Throw increasing labor costs and shortages of housing and it is probably not a stretch to believe that today’s $ 600,000 home can eventually crawl up to $ 1 million.
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Recent data support the idea that housing prices are constantly ahead of inflation in many markets. Housing prices in the United States has increased nearly 60% since 2019, with an average sale price of $ 447,455 in the mid -2025. Even at a moderate annual growth rate of 6%, the $ 600,000 home will reach $ 1 million in about 10 years. In some regions, this may be even faster – Miami, for example, ranked a 42% increase in housing sales from $ 600,000 to $ 1 million in a year. At national level, average housing prices have increased to over $ 503,000, and long -term trends show that housing usually rates 6-7% a year.