Real Estate prices...

PimpinD2 · Posted: Aug 01, 2006 2:43 am Post subject: Real Estate prices...

I know this varies from area to area, but I was wondering if anyone knew the average increase in property value. I guess i was just amazed looking at the eapprasial calculator on ditech.com and saw my parents house went up a good bit (ill leave the numbers out till the conversation gets moving as to not sound like a prick) in price since we purchased it in 1992. So what are average increase in the Florida or any where for that matter...
Lets just say from the calculator, since the house was purchased in 1992 it has seen a 326.897 % increase. That comes out to a 23% increase each year. Is this normal, good, or crappy...

just bored at work ha...

chavez · RIP MHL 04/25/1958 - 01/11/2006

PimpinD2, real estate historical average is somewhere in the 3 to 5% range.

It is way out of the norm, and I would not expect that trend to continue. (to the contrary)

PimpinD2 · Posted: Aug 01, 2006 7:57 am Post subject:

The trend has been continuing for the last 14years... well i dunno if it just surged but all the houses in our area are at least pushing 1million. Ill give you the numbers to see if im wrong ... but it was purchased for $290,000 in 1992... and now has been appraised for 1.238mill. im pretty sure i did the math right. I dunno like you seemed to good to be true.

pyrocasto · Posted: Aug 01, 2006 6:51 pm Post subject:

PimpinD2, real estate sometimes will boom in an area, but it will also fall. Average land around me went up 13% last year, and probably a bunch this year too. But give it a few year and it will start slowing down some here.

chavez · RIP MHL 04/25/1958 - 01/11/2006

PimpinD2, well, between 1990-92 there was a correction in real estate prices. Which means, that a buyer in 92 was pretty much getting the rock-bottom lowest price of the last quarter century (inflation adjusted). From 92 to 98, the market was largely stagnant, and then began a slow trend upward, which became a very sharp trend upward in 01, and did not stop until the end of 05. Economics as usual began to take over, and many markets started to become flooded with inventory as people try to "cash in" on their "investment". Many markets are now at record inventory levels. Add to that rising interest rates - which are now back to 2001 levels, and what you get is a sharp stop in selling, and the beginning of what will probably be a long string of YOY declines.

PimpinD2 · Posted: Aug 02, 2006 12:19 am Post subject:

weird, maybe miami is just in a huge bubble ready to burst. Seems like every house is for 1mil+, but the weird thing is they actually see. They are hidious creations but sell. I guess its all the South and Latin American money come in. Our house was desgined by a well know architech, Architechtonica, they have designed many of crazy looking building in downtown miami and south beach, so maybe that plays a roll. Oh well i guess time will tell