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Hi Terry,
I doubt Google’s validity in this regard.
In this regard we need to bear in mind that realtime, quoted, property prices fluctuate, sometimes wildly. Jan Somers was speaking about the 30 year average – which I have found to be accurate for a property held for the past 30 years, as well examining the price of an inner city property in the late 1990s, purchased the 30 years prior to that.. She was exclusively referring to inner city property.
In far shorter time periods than 30 years, I note the longer the price goes sideways, the faster it will eventually return to the 30 year mean compound interest rate of 11% as indicated on a time vs price graph i.e. long static price periods and rapid increases.
Where I live, the sideways motion can be as long as five or ten years. But over the longer term, Jan’s forecast has been accurate over the past 60 years in this location.
The fact that the original comment was made in 2010 does not derail Jan’s thesis.
Cheers
Long time between drinks I know, but when in the late 90s I read what Jan Somers said in her book about the annual compound interest rate of growth for inner city Australian property over a period of 30 years being 11%, I checked it out with an old friend who had previously puchased an inner city property thirty years earlier. The caclulated result for the then value of his property, after 30 years, came out at 10.99% per year. I was sold on Jan’s claim, and I have kept my inner city property. This year (2024) it has been 30 years since I bought it – Jan’s statement was spot on.
The Australian inner city property compound growth rate – over 30 years – is 11.00%. There have been times where growth has gone sideways for multiple years, but the longer it has done that the more rapid was the eventual return to the mean (graph) of 11.00% per annum.
