Should homes increase in value? Why should they? No other commodity I can think of is expected to increase in value.
If you buy a modest car for $20,000, should it later be sold for $30,000?
If you buy a loaf of bread for $2.50... and you put it in your pantry for a few years.... can you then sell it for $100?
Some people sure think that way about their homes. And their values, ones that smell like rotten bread and ones that smell like fresh flowers, can either increase, decrease, or remain flat.
What drives the prices up? Is it the transaction cost of selling? Why do people think their home is worth more than when they bought it?? Is the roof any newer? Is the A/C on it's last leg?
And if the value doesn't go up, why not chalk some of that up to the enjoyment we got out of living in the home? Or the tax write-offs received?
Of course, The Brian Worrell Team does everything possible to ensure that my sellers get the highest price with the least amount of inconvenience. We don't have crystal balls, but we'll do our best to give an accurate prediction of what you can expect to get for your house! Call for a free price analysis of your home, 281-948-7042.
Chances are pretty good that your home has increased in value if you've held onto it for a period of time. Home ownership is still one of the possible best investments... And there is still time to take advantage of the tax credit - but act quickly. Call 281-948-7042 with any questions!
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It's a mathematical thing that is based on economics / supply and demand.
As the popluation grows, then the value of the existing homes goes up.
There's only so much land on the planet.
When the market turns around, of course they should increase in value. Property increases and always will. I just hope in the years remaining of the terrible economy that homes don't continue to decrease so drastically.
Brian,
People think thing remain the same as when they last delt with a piece of real estate. It they only have sold when the markets were up they do not understand that they could have a property that goes down in a bad market.
I somewhat agree with Ralph - other considerations are locations that are considered more "valuable," or less valuable. For example, California was once considered the Golden State, and was desireable, with great weather.
Now, that it is essentially bankrupt, many people don't care, and the exodus of people drops values.
Home value is based on demand for them, not age. Over time, money is worth less, due to inflation, so that also pushes the price up. In that same vein, rents increase which further increases the value of the underlying asset, the home.
If a home's value stayed the same or went lower like a car, it would stand to reason that it would eventually be worthless. This is actually what happens, except the land is still there, and that goes up for the reasons already explained.
Our population has remained steady except for illegal immigration so the arguement that property should go up because of population growth doesn't make sense. Most illegals don't buy homes. Property values go up (or down) because of government intervention and speculation.
I thought a home went up in value depending on what I needed when I sold it. Also, uniqueness has a premium. Keep in mind, my home is one of a kind -- it's the only one among all the others like it that is priced this high. Are all my seller prospects wrong?