Thread: Home value question

Originally Posted by frenchy1012

Hello all, i am a current homeowner and have some questions about the value of my house. My home is 3 years old and i purchased it for 107 thousand. The identical house in my neighborhood has sold for 149,900. I know that i got my house at an incredible deal and have had no problems as of yet. Well that gets the background out of the way.

My question is, will the value of my house once the subdivision fills up and is no longer considered a new subdivision. Currently houses are selling for waaaayyyyyy more than i bought mine for. I would not like to sell my house until i have been there for about 5 years. I am just making sure that my house will not be worth less than what i paid for it when i sell. Well i hope that is enough info to get a decent answer and i appreciate any info you can give me. thanks.

Typically, your home will appreciate in value by 2-4% in value per year. Within the past 3 years, the overall RE market spiked in the first year and has leveled off in the past two years. Of course, there are pockets and "bubbles" that aren't as affected by what has happened with regard to the credit crisis and mortgage meltdown.

I would suggest that you contact a Realtor (I can provide one in your local area if needed) to give you a CMA. That would probably be the best way to start in your research, though.

It is difficult to predict the value of your home two years down the road, especially with the current real estate market. Home values are actually dropping in some areas, while they are going up in others. You home value will be negatively affected, especially if a lot of homes go into foreclosure in your subdivision.

Just to have an approximate, very vague idea, you could check your home price on zillow or cyberhomes. However, as it was suggested, the best way is to contact a realtor.

I wouldn't trust anything Zillow has to say. Typically home prices do go up when the builder's leave the subdivision. However, you do have a couple of things to worry about. 1) As mentioned before, in a few years will the subdivision be plagued with foreclosures and drag the values down? 2) If the builder gets desperate to sell, will they slash prices and bring values down?

You got a great deal on your house.

You like your house.

You like your neighborhood.

You don't want to move.

Stop worrying over what the future might do to the value of your house and enjoy what you have now. Life is too short. If you want to worry about something try this. The Mayan calendar says the world will end in 2012. So if that happens all of our houses will be worth a lot less.

Originally Posted by Greg

You got a great deal on your house.

You like your house.

You like your neighborhood.

You don't want to move.

Stop worrying over what the future might do to the value of your house and enjoy what you have now. Life is too short. If you want to worry about something try this. The Mayan calendar says the world will end in 2012. So if that happens all of our houses will be worth a lot less.

hahaha that is a good point. I will have to keep that in mind. I was mainly looking for an idea, i do not have any plans to move until i have kids and that is still a few years away. thanks for the laugh.

We are off late witnessing Indian realty prices touching the sky. Learning to know what precedes property price increases can be challenging for any investor. There are some well-recognized factors that drive the market. I have discussed few of them below:
1. Demand & Supply- Population change is the key driver of demand. When an area becomes popular more people want to live there. Given there are fewer dwellings than interested parties, prices increase and vice-versa. The other driver is availability of land.
2. Affordability and availability of money-Affordability is the relationship between housing prices, interest rates and wages. It's the cost to the owner or investor to retain and enjoy a property. When prices, interest rates and wages reach a ceiling in a particular area, residents often realise they can have a better lifestyle elsewhere.
3. Infrastructure-Infrastructure is always a major driver for price growth when it increases the attractiveness and amenities of an area. The benefits of infrastructure are generally recognized after the changes.
4.The resources boom-The demand for skilled and unskilled workers is increasing day by day.And with an increase in their salary scale, these workers seek to improve their lifestyle by buying bigger and better homes, or maybe an investment property or two.
Put a number of these drivers together and you have an extremely good understanding of what's going to drive price growth. Having identified these areas, careful homework may reveal good cash-flow returns as well. For more view- realtydigest.blogspot.com

I wish I could tell you for certain that your home value will increase over the next several years, but no one can really predict what will happen. In many areas prices are declining, while some have stabilized. Some homes are still rising in value.

Typically, once a new subdivision is sold-out and supply is diminished - value should increase - supply vs. demand. This is assuming a demand. If prices do decline in your area, would you want to sell your home? Would you buy another home in the same area, being affected by the same market?

Based upon your comments on what you paid for the home, and what others paid, it sounds like you got a good deal. I would enjoy your home, keep an eye on the market, but keep in mind that real estate has highs and lows. What goes down, generally goes up again.

Best wishes!