Home Values

[Katsmeow]

I think the prices you see on Zillow are pretty much based upon the property taxes you pay, (assessed valuation). I can use my existing house as example. About 5 years ago I found out that I was paying significantly more in property taxes compared to neighbors and Zillow showed my house valued above all other similar houses within several blocks.

It may have something to do with it, but that surely isn't it. My assessed valuation has barely changed since we bought this house 2 years ago. Yet, in the last 14 months Zillow says the house value has increased 30%! (This is in Texas where property sales data isn't public, BTW).

 

[Spanky]

Our estimated home value remains unchanged. Our daughter living in San Jose, CA has seen price increases by >50%. They blame people are hurrying to buy in fear that price will significantly go up later and flippers with cash (e.g., Chinese from Mainland) -- not to mention those with big salary, bonus, and stock options from high tech companies (i.e., Google, Facebook, Linkedin, etc). These people are paying more than asking price.

 

[Options]

Our estimated home value remains unchanged. Our daughter living in San Jose, CA has seen price increases by >50%. They blame people are hurrying to buy in fear that price will significantly go up later and flippers with cash (e.g., Chinese from Mainland) -- not to mention those with big salary, bonus, and stock options from high tech companies (i.e., Google, Facebook, Linkedin, etc). These people are paying more than asking price.

+1
Same with my area just outside of Beverly Hills in LA. Places are receiving multiple bids and going above asking.

 

[ronin]

I think that is happening around us as well. From what I've heard, demand is pretty high and lots of places are going for above the list price.

While I'm not contemplating a move, I think eventually in a couple of years my problem, so to speak, will be a sort of reverse downsizing. We have a small house on a 1 acre lot, equestrian zoned, and want to move to the beach. That'll mean a somewhat larger house on a much smaller lot in a higher priced area. Not so much interested in a mortgage after being debt free for 12 years. Just kind of eyeballing the sitch. Plus the culture shock of moving from Aztlan to beyond the Orange Curtain.

 

[MichaelB]

Since I am not selling, I guess it doesn't matter, and it's only Zillow estimates, but since the beginning of the year my home is up 14.2%. That is a lot regardless.

My guess is a sudden jump in prices at this stage of the recovery points to distressed sales are having mush less impact on the "good" housing stock. It's not that the house increased in price, but that foreclosures are no longer pulling it down so much. It's a good sign for the neighborhood real estate values.

 

[FIREd]

Our estimated home value remains unchanged. Our daughter living in San Jose, CA has seen price increases by >50%. They blame people are hurrying to buy in fear that price will significantly go up later and flippers with cash (e.g., Chinese from Mainland) -- not to mention those with big salary, bonus, and stock options from high tech companies (i.e., Google, Facebook, Linkedin, etc). These people are paying more than asking price.

Sounds about right. I am looking to buy on the Peninsula and I can't believe what some people will pay to buy here. A friend was outbid by a $2.5M cash offer on a property with a $1.5M asking price.