-
Trouble logging in? Send us a message with your username and/or email address for help.
Just In: Where Are Prices Now And Where Are They Going?
- Thread starter Kurt
- Start date
Matt J
SWGB
Someone's going to crush that with math that includes property taxes, utilities, insurance, etc. I'm not sure why some of the people that post in the Real Estate section ever bought homes in the first place.
SHELLY
SoWal Insider
Matt J
SWGB
You missed my point.
SHELLY
SoWal Insider
I plugged in a beginning value of $105K, ending value of $315K and over 17 years the ROR was 6.67%
Em
Beach Fanatic
Shelly, for the math, I was using guestimates looking at my charts, which is why I used the words, "about $25,000 per year" when referring to the growth rate of median price from 1993 at $85,000 to the end of 2003 when median price was $337,000. That equates to a median price growth of $252,000, in non-bubble/collapse years. That spans over 11 years and equates to $22,900 per year of growth during those years. "IF," as I prefaced my entire article, we remove the bubble/collapse growth from 2004-2009, and we pick back up at the beginning of 2010, we continue on the path that ended at the end of 2003.
We ended 2003 with median sold price of $337,000. We closed Sept 2010 with median price of $367,500, which is a difference of $30,000.
Yes, I know you cannot change the past and pick and choose what you want to include and want to dismiss. I thought I clearly stated that I was elliminating the bubble/collapse years from 2003-2009 for the sake of discussion. I guess you can focus on whatever you want. I'm not tyring to pretend that the bubble/collapse didn't occur. I'm simply showing that the we are back in line with similar growth that we had for ten years leading up to the boom of the market, which most people considered to be "normal" growth.
If you don't feel that is enough disclosure, how about I add that including all 18 years, from 2003-Sept 2010, we have seen median sold price increase of $15,700 per year on average?
While I'm at it, as a bonus just for you, Shelly, I'll even throw in a graph including the bubble/collapse period from 2003-2009, with the linear progression line.
We ended 2003 with median sold price of $337,000. We closed Sept 2010 with median price of $367,500, which is a difference of $30,000.
Yes, I know you cannot change the past and pick and choose what you want to include and want to dismiss. I thought I clearly stated that I was elliminating the bubble/collapse years from 2003-2009 for the sake of discussion. I guess you can focus on whatever you want. I'm not tyring to pretend that the bubble/collapse didn't occur. I'm simply showing that the we are back in line with similar growth that we had for ten years leading up to the boom of the market, which most people considered to be "normal" growth.
If you don't feel that is enough disclosure, how about I add that including all 18 years, from 2003-Sept 2010, we have seen median sold price increase of $15,700 per year on average?
While I'm at it, as a bonus just for you, Shelly, I'll even throw in a graph including the bubble/collapse period from 2003-2009, with the linear progression line.
SHELLY
SoWal Insider
Thanks for 'splainin' how you arrived at the "about $25K per year median price growth"...very, how shall I say....creative.
As was mentioned in another post above; once the transaction and carrying costs of RE are subtracted out, and the time value of money is factored in, the average JOEs on the street don't make out like bandits on their RE investments (I of course took the liberty of eliminating the bubble years).
Thanks for the bonus graph.
.
Last edited:
Em
Beach Fanatic
I don't recall saying that people made out like bandits? Are you projecting that thought onto me? It's not the way I think, and it's not something I believe. I'm simply talking about today's prices being in line with the "normal" years leading up to the bubble/burst. Do you think that is so evil?
I removed the bubble/burst to see where we would fall in line if the bubble/burst didn't happen. I also did so in reply to someone saying that prices had nowhere to go but down, and I present a different aspect to give some perspective that we seem to be back in line with where we were prior to the bubble/burst. Make of it what you will, Shelly.
In closing, I will add that many people buy real estate as a life-style choice, a luxury item, not different from, though less expensive upkeep, than buying a super yacht. Not everything is meant to bring in money, though if renting out a vacation property helps you pay for your life-style, by all means, rent the property. You might be surprised that a number of buyers don't even rent their property. They just come to the beach on occasion and enjoy life in their beach home.
I removed the bubble/burst to see where we would fall in line if the bubble/burst didn't happen. I also did so in reply to someone saying that prices had nowhere to go but down, and I present a different aspect to give some perspective that we seem to be back in line with where we were prior to the bubble/burst. Make of it what you will, Shelly.
In closing, I will add that many people buy real estate as a life-style choice, a luxury item, not different from, though less expensive upkeep, than buying a super yacht. Not everything is meant to bring in money, though if renting out a vacation property helps you pay for your life-style, by all means, rent the property. You might be surprised that a number of buyers don't even rent their property. They just come to the beach on occasion and enjoy life in their beach home.