While the theory has been tested recently, from a long term perspective real estate values historically go up. Land is finite. As Will Rogers famously said, “They’re not making any more of it.” As the population increases, there is always a demand for real estate.
Furthermore, as our central banks continue to print more and more money, assets with a tangible worth such as gold and real estate hold and gain value while the fiat currencies (which are backed by absolutely nothing) continue to decline. Well purchased real estate is an excellent hedge against government recklessness.
There will always be market cycles lifting or lowering values, including market corrections, downward trends and artificially inflated price bubbles that burst. There will always be natural disasters such as hurricanes, flooding or drought and manmade disasters such as crime waves and pollution that can diminish property values. Financial markets and interest rates, and the changing fortunes of area industries that employ people and create wealth, will always have a bearing on real estate markets. But in general, over the long term, real estate goes up. If you buy property, it stands to appreciate over time. But remember, there are no guarantees.