While this year’s dramatic price inflation is putting a big hit on our fixed pension, it’s doing wonders for our home value. Housing is one of the categories leading the inflation parade in 2021.
This chart from YahooFinance shows how sharply the price increase has been over the past few years. The pandemic has brought on a huge spike. Prices are up 20% nationally versus last year.
The change has been seen in our neighborhood, too. I wrote earlier this year about how prices have slumped in our corner of the world since we built a dozen years ago. Since this spring, 4 houses came to market and quickly sold.
Based on those comps, Zillow is now showing our home’s value up 15.5% in the last 12 months. That’s quite a bump – even if less than the national change. After a decade in the doldrums, now might be the first time since we’ve lived here that our home investment is above water.
What’s next? Well, as usual that depends on who you talk to. Goldman Sachs is saying that home prices will rise a further 16% in 2022, while Yale’s Robert Shiller – name sake of the Shiller Home Price Index – says they may actually decline. After 2 years of huge growth, I would guess they are due for a set back myself.
No, we’re still not planning a move ourselves at this point. We’re more likely a buyer than seller if we find a Florida place that makes sense for us. We’ve been talking about that for about a year now. We’ll see how the market shakes out down there first.
How’s the real estate market in your corner of the world? Are prices keeping up with these national trends?
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