Because it’s an asset like any other and prices reflect the same fundamentals that drive everything else in the world. And when I mention 10%/yr ROI I’m citing the average annual return on equity, not even RE specifically. But since RE has a strong positive correlation with stocks and commodities there’s no wonder prices have increased exponentially along with everything else.
Because it’s an asset like any other and prices reflect the same fundamentals that drive everything else in the world. And when I mention 10%/yr ROI I’m citing the average annual return on equity, not even RE specifically. But since RE has a strong positive correlation with stocks and commodities there’s no wonder prices have increased exponentially along with everything else.