Ronstar
Moderator Emeritus
According to the Arizona Republic, my zip code and a few others had housing flat to plus 5% in 2007. Other areas around Phoenix were down.
Zillow - by design - is a rearview mirror. .
To sell in a down market, one needs to set the price below the trend...Trying to get ahead of the slide.
Why do you say 'by design"? Just curious.
but turns out they didn't sell either so that trick did nothing.
Wahoo! It finally worked for us.
WOW 9 years of over 13% annual appreciation.We bought 1550 sq ft house in SF east bay in 1997 for $215,000. We sold out in Dec 2006 for $660,000.
WOW 9 years of over 13% annual appreciation.
4% Appreciation my *ss
Honobob, calc link above shows that example as 12.15% but let's not quibble. I don't know exactly what you are smoking, pumping, or whatever.. but using an example of a person who got in at a good deal and came out at the top is not instructive or indicative of long term trends or reasonable valuations. It's speculation (not that Kougar was speculating). Ya know, maybe salaries in SF can support such prices indefinitely (but I doubt it). Maybe houses in Hawaii are always going to attract moneyed buyers (of that I have little doubt).
Maybe whoever bought from Kougar has $200k-$300k in household income to sustain a 1500sf house. For how long? What will be instructive is what Kougar's buyers eventually sell it for down the road. The rest of us live in the real world that follows certain laws of gravity.
Most of us live in the 'real world'....
I am IN Houston... and I bought my house in the last downturn 20 years ago... and my appreciation rate...
A whopping 3.1%.... I would LOVE to have the 4% "my ass" appreciation...
I still don't get why you are assuming that asset price increases during an obvious bubble (as shown above and basically anyplace else you care to look) can or should persist into infinity, when you are talking about overall regular RE prices and not Hawaii or the Hamptons or 5th Avenue.
Go honobob!!
Ha
{quote]So a $250k "average" house today will be $500k in 10 years, and a million dollars in 20 years? Where is the wage/GDP growth to sustain that? They are desperately pumping their own sector.
hmmmmmmmmmm.
My parents bought their house for 20K in 1965, so in retrospect:
1965 -- 20K
1975 -- 40K
1985 -- 80K
1995 -- 160K
2005 -- 320K
That looks about right, actually. Their house IS worth about $320K now, so maybe 10% isn't that far off, on average. Of course, if you'd told them back at 20K that they'd be sitting on 320K today they'd have laughed you out of the room.
I don't know whether to feel good or bad about this.
And I am not convinced that there are "no brainer" appreciation locations over the next 20 years. The coastal, south, and waterfront addresses are so "bubbly" that few will see 10% annual growth (read: "inflation plus 7%").
Most people are only looking at what they see... and only very close...
Hono might be getting the huge increases he says... and good to him...
But we all know that 'location' is the important part of RE...
......
Bob
You do realize that over the next few years that price are likely to be lower or at best flat ? This will lower your overall rate.
Rob