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To: Tommaso who wrote (34547)	7/29/2005 8:50:13 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 116555

Most people just think in nominal terms. In nominal terms, house prices nationwide are up 435% since 1976, but in REAL terms they have only increased 69%. I just checked ... in real terms (quarterly adjusted for inflation) National House prices dropped 29% of all quarters since OFHEO started tracking house price (34 or 117 quarters since 1976). NOTE this is in real terms (using CPI less shelter to adjust the price). Real house prices dropped 7% between 1980 and 1984 (of course inflation was high so that masked the price drop). Real house prices dropped 8% between 1989 and 1995. Once again, nominal prices increased every year.

To: Tommaso who wrote (34547)	7/29/2005 10:58:46 PM
From: Steve Lokness	Read Replies (3) \| Respond to of 116555

Tommaso; I disagree. To read your post, an investor could never ever lose money in real estate during the past 50 years. I think there are many people who have lost money who would disagree. I sold a rental house in 1985 for the exact dollar amount that I paid for it in 1980 and that is after an addition was made to the original house. Some places perhaps have held steady - others have decreased and in some instances decreased substantially. Good Investing; steve