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Real Estate - Ridiculous Appreciation
Old 07-07-2021, 08:07 AM   #1
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Real Estate - Ridiculous Appreciation

So I like to update my spreadsheet these days because everything is doing well, and that includes my home value. I live in very desirable area, but it's getting ridiculous!

If I use Zillow as my tracker for home value, the value has gone up nearly 50% in the past 18 months (since before Covid), which means my equity is up about 87% since then, as of today. I know Zillow isn't fully accurate all the time, but it's in the ball park. No plans to sell anytime soon however, so it's all academic.
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Old 07-07-2021, 08:43 AM   #2
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In my old house, I used the tax assessed value for my net worth calculations. In my current home, I use the purchase price, since itís higher than the tax assessed value. Once the tax assessed value exceeds the purchase price, Iíll use that value.

I realize itís lower than the actual value, but as you say, itís academic. Plus, if I had to sell, thereís fees and such so the amount I get is lower than the sale price.
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Old 07-07-2021, 09:00 AM   #3
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Roger that, tulak. What gets me is that every week, Zillow's estimate goes up between $10,000 and $20,000. And I say it's in the ball park, because I see the comps for the sales that close in my neighborhood. Ridiculous!
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Old 07-07-2021, 09:26 AM   #4
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Real estate isn't going up quite as fast here as in your location, HawkeyeNFO, but it's still insane! Both homes for sale and rentals are booming.

Frank and I decided to stay put, because we need to live SOMEWHERE... and we know we like it here, and buying a new home would be really expensive in this crazy real estate environment. So for us, realtor dot com is merely a source of entertainment and laughs right now. Any money we have "made" is purely hypothetical.
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Old 07-07-2021, 09:32 AM   #5
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It's a wash for most of us, now if we've died and our kids sell up.. Woo-hoo..


IMO the biggest issue it RE taxes they will inevitably start rising, that cost us all more money even though we haven't gained any real extra value ATM. You would not believe how high farmland taxes have risen. We haven't sold and we don't make any extra money but the taxes keep rising.
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Old 07-07-2021, 11:03 AM   #6
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Real estate isn't going up quite as fast here as in your location, HawkeyeNFO, but it's still insane! Both homes for sale and rentals are booming.

Frank and I decided to stay put, because we need to live SOMEWHERE... and we know we like it here, and buying a new home would be really expensive in this crazy real estate environment. So for us, realtor dot com is merely a source of entertainment and laughs right now. Any money we have "made" is purely hypothetical.
I feel that the only time we could/would take advantage of the rising RE, is if down the road we don't wish to take care of a home anymore and downsize to potentially an apartment.
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Old 07-07-2021, 06:35 PM   #7
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I recently sold my house in the midst of this craziness, and I'll never regret it, even if the party keeps going. Smoothest transaction ever (no inspection, no repairs) and winning offer was way above the asking price.

I'm now renting for the first time in about three decades. I won't lie -- it feels strange, but also liberating. The question is whether I'll keep doing this (there's no rent control in this city) or eventually opt for a small condo. Condo HOAs have reached ridiculous heights, though, so not sure I'll go that route in the end.
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Old 07-07-2021, 06:46 PM   #8
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I'm glad I bought rental properties.

And as far as "Zillow isn't fully accurate all the time"...Hahaha
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Old 07-08-2021, 01:32 AM   #9
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Sold the house and bought a condo in March. We closed the end of April and prices are now higher. I love my condo so it worked out great.
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Old 07-08-2021, 01:43 AM   #10
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Hawkeye, I think.prices have peaked here My neighbor says she thinks her house is worth $xmillion because Zillow.

That to me signaled a market top.



And lumber futures have fallen in half recently. Trees and tree prices do not grow to the sky
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Old 07-08-2021, 05:27 AM   #11
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Agree with Montecfo. Lumber price reduction/construction resuming, people back to work/less fussing about their homes, and kids back in school in late summer/fall are reasons I can see a moderation in sales volume and price growth.
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Old 07-08-2021, 05:41 AM   #12
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Six months before the pandemic hit we lost the tenets in our rental. I did most of the repairs myself to get it back into shape for the next renters. Spent many long nights over there on repairs and was very tempted to sell it once it was all fixed up again.

So glad we held on to that home. Like everywhere else, the value is way up. Hoping someday one of our kids will come back to California and will sell it to one of them at a bargain basement price.
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Old 07-08-2021, 05:44 AM   #13
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It's good to have an appreciation for the ridiculous.
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Old 07-08-2021, 07:42 AM   #14
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We’ve given up on trying to find a new house in this market. Our agent says it’s nearly impossible to price a house for sale these days and they just throw a high asking price out and see what sticks.

For example, we looked at one a month ago the day it was listed. We passed because it was on a busy street and needed a fair bit of work and updating for what they were asking, but it closed by the end of that week for 20% above the asking price. Not “under contract” but “closed.” Crazy!
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Old 07-08-2021, 09:05 AM   #15
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The guy who mows my lawn recently gave me some hot tips on how to flip homes and earn a few extra 100 Grand over the next year. I think his grandfather used to shine shoes for very wealthy people in NYC so he must know what he's talking about.
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Old 07-08-2021, 09:24 AM   #16
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Quote:
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The guy who mows my lawn recently gave me some hot tips on how to flip homes and earn a few extra 100 Grand over the next year. I think his grandfather used to shine shoes for very wealthy people in NYC so he must know what he's talking about.
Good one! I know one person who sold 3 bedroom in Seattle area for 900k and moved to 2 bedroom in 55+ near grand kids for 400k, regular person did well.

P.S., FWIW, lawn care person around here I know makes 6 figures.
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Old 07-08-2021, 10:10 AM   #17
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The house next door just sold for $395K. The neighbor bought it for $150K (bank repo) in 2009. Now being improved by the flipper that bought it and I think it will go for $450 to 500
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Old 07-08-2021, 03:38 PM   #18
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I recently sold my house in the midst of this craziness, and I'll never regret it, even if the party keeps going. Smoothest transaction ever (no inspection, no repairs) and winning offer was way above the asking price.

I'm now renting for the first time in about three decades. I won't lie -- it feels strange, but also liberating. The question is whether I'll keep doing this (there's no rent control in this city) or eventually opt for a small condo. Condo HOAs have reached ridiculous heights, though, so not sure I'll go that route in the end.
How tough was it to find a rental? My DW is in the rental business in several states and almost universally as soon as a SFH hits the market, there are showings scheduled immediately and there are multiple applications THE SAME day. We have a friend that is moving up from TX and lost out on 4 houses before they called her begging for help. We have played with the idea of listing our house to see if we could get a "make me move" price, but there is NO way we would go under contract without having someplace to go.
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Old 07-08-2021, 03:57 PM   #19
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The guy who mows my lawn recently gave me some hot tips on how to flip homes and earn a few extra 100 Grand over the next year. I think his grandfather used to shine shoes for very wealthy people in NYC so he must know what he's talking about.
Good stock market reference.
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Old 07-09-2021, 09:00 AM   #20
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Now I think the price of RE is ridiculous. The same model house as mine 4 doors up the street just sold for almost $1.7M.
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