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I bought in 2016, and, if Zillow is to be believed, its resale value has increased by over 30% in that time. That's crazy, right? The minor improvements I've ma
by maxfurman 4y ago
I bought in 2016, and, if Zillow is to be believed, its resale value has increased by over 30% in that time. That's crazy, right? The minor improvements I've made in the last few years can't possibly be worth that much. Philly is not a 30% nicer place to live than it was 5 years ago, to put it nicely. If prices go down and I'm "only" up 10% over when I bought that's still pretty good.
Asset prices, particularly homes, have been puffed up by ZIRP and other factors for a long time, and are overdue for a correction.
- orev 4y agoYou’re fundamentally misunderstanding how prices work (as does the vast majority of people, including journalists who report on these things). The price of anything is dependent on one thing alone: how much someone else is willing to pay for it. Any improvements you made might entice someone to pay more, but if they don’t care about the things you changed, they won’t pay for them and therefore the changes didn’t add any value. If people are willing to pay 30% more from you doing nothing, then the value still went up simply because that’s the definition of value.
- AnimalMuppet 4y agoIn the six years since 2016, what has been the cumulative amount of inflation?
- dzhiurgis 4y ago24.2%
- AnimalMuppet 4y agoSo a 30% rise in home value is not much, in real terms.