You know, I keep reading on this board that we will never see home prices where they were two years ago again in our lifetime.

First, I think that comment depends upon whether you’re 20 or 60…it may be true if you’re 60, it certainly isn’t true if you’re 20.

Second, to get where they were, home prices would have to roughly double. That has certainly happened before in as little as 10 years, and I have no doubt it can happen again.

My pop bought a home in Podunk, CA (not the town’s real name) in 1970 for $21K. Ten years later, he was able sell it for over $50K and he had done very little to the home…not even paint or carpet.

True there was quite a bit of inflation in the 1970s, but that sort of thing could certainly happen again. I don’t think it is far-fetched at all to believe home prices could double in 20 years, and perhaps much less than that.