Market curve last 30 years

[Henry Lazerow]

Read a nice discussion on Reddit and would love to hear BP members views on this chart. Many seem to be waiting for the next crash but real estate does not necessarily cycle with short term ups and downs with the potential for this to go on another decade. Outside the likely once in a life time subprime loan crash real estate has had steady growth over the last 30 years with a very slight reduction in 1991. 

How long do you believe this market can continue growing? How do you feel this will affect investing and how have you changed your strategies? What is real estate doing in your local market, hotter then last year? 

We are having a trend in Chicago north side of the farther out neighborhoods 2-4 units exploding. For example Avondale I sold a property $695k just 7 months ago and I relisted it for $799k now and it went contingent first week multiple offers. I am seeing huge growth in many of the "farther out but still desirable for young professionals" neighborhoods such as Avondale, Albany Park, West Town and Humboldt Park. Many clients are able to do larger flips/refi's from the added short term appreciation vs just the equity made through value add. 

I personally think we will see continued growth in major cities for many years to come. For example Chicago will go from .7-.8% rate deals to .5% rate deals being the norm (rent to purchase price ratio) while smaller towns will continue to see increases but at a much slower rate. This is of course just my opinion and only time can tell. Unless of course anyone on here has a crystal ball I can borrow ;)