Home values have increased and decreased over the past twenty years by various rates in various parts of the country. One good example is Bend, Oregon which experienced rates of appreciation in home values of up to 35% in 2004 and 2005. Over the past two years, however, home values in Bend, Oregon have decreased at very close to the same rate.
More moderate rates of appreciation have averaged 7% to 10% per year in the 1990’s and early 2000’s in many parts of the country. In a healthy real estate market that is generally the rate of appreciation experienced. However, in the current real estate market, due to economic downturn and the burst of the real estate bubble, home values have decreased by as much as 20% in many parts of the country over the past two and a half years.