Home, Sweetly Inflated, Home

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.

Source: YahooFinance.com

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?

Image Credit: Pixabay

7 thoughts on “Home, Sweetly Inflated, Home

  1. I noticed that redfin just upgraded all their pricing estimates here in San Francisco, which also shows double-digit gains.

    I think Goldman Sachs is too aggressive. Will probably moderate to mid single-digit price appreciation numbers.

    Yes, I’m pretty bullish on real estate! Glad to be long with you!

    Sam

    Liked by 2 people

    1. I imagine when it comes to real estate, San Francisco is a pretty unique place. A real roller coaster, so being ‘long’ helps flatten out the bumps!

      Like

  2. Real estate values has been going up where I am as well. And it’s been going up in Memphis, where I’ve sold my single family rentals a year prior as well. Silly me thought that the real estate market would crash (or at least slow down) mid-2020. Nope.

    Liked by 1 person

    1. Wondering it you were out of your rental properties before Covid-19 struck? Did your city have an eviction moratorium? A lot of landlords had real trouble collecting rents during 2020.

      Liked by 1 person

    2. That’s a definite oops! But, if you put your money into the market, you probably did even better.

      Like

  3. I live in a rural area where people used to complain about the distance to grocery stores and work. The George Floyd riots with the looting and burning chased people away from the ‘action’. Telecommuting and fiber internet has also made the rural area I live more tenable. The pricing seems to have gone up by 50% over the past year.

    Liked by 1 person

    1. We live in MN … unfortunate home of the Floyd homicide. Even in that part of Minneapolis, home values are up +8% versus year ago. That said, a good number of people say they are fleeing the city and making their lake cabins into their primary residences.

      Liked by 1 person

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