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How much do you think (if at all) home prices in Nassau are overvalued generally? I know this question is too simplified b/c it depends on the area and lots of other factors etc....
Here's a simple example with figures that lead me to believe prices are overvalued:
My parents sold their 4 Bed, 2.5 Bath, 9500 lot, corner property, In-Ground pool in 2000 for $272,000 (at that time, I thought the buyers were suckers - so I guess I've always felt prices were too high...).
Now, the nassaucountyny.gov site shows the assessed value for '10-11 and '11-12 just over 400k. Assuming this assessment is correct (which probably most homeowners will argue is incorrect), this home increased in value 4% every year for each of those 10 years (used a compounding interest calculator to get this value).
If I change the value to 3% per year in the calculator, then the value after 10 years is 367k - that sounds much more reasonable to me!
All houses in Nassau County were reassessed in 2000-2001 due to a lawsuit, and all houses went up ridiculous amounts over the last 10 years. I'm not sure what you think is unique about your parents' house....I would say most houses at least doubled in price over that time period.
Is a house overvalued? A house is worth what someone is willing to pay for it. If your parents' buyers sold their house in 2007 for $400K, they are probably pretty happy.
Most buyers think they overpaid. Most sellers think they got less than they could have. Human nature.
How much do you think (if at all) home prices in Nassau are overvalued generally? I know this question is too simplified b/c it depends on the area and lots of other factors etc....
Here's a simple example with figures that lead me to believe prices are overvalued:
My parents sold their 4 Bed, 2.5 Bath, 9500 lot, corner property, In-Ground pool in 2000 for $272,000 (at that time, I thought the buyers were suckers - so I guess I've always felt prices were too high...).
Now, the nassaucountyny.gov site shows the assessed value for '10-11 and '11-12 just over 400k. Assuming this assessment is correct (which probably most homeowners will argue is incorrect), this home increased in value 4% every year for each of those 10 years (used a compounding interest calculator to get this value).
If I change the value to 3% per year in the calculator, then the value after 10 years is 367k - that sounds much more reasonable to me!
Like "twingles" said. The value of a house is whatever a seller and buyer agree on. I suspect you might be wondering if home assessment values are inflated. Absolutely! I would love to sell my house for what the assessor says is the market value. I think the assessor's letter re: valuation should also be an offer to purchase. LOL!
Like "twingles" said. The value of a house is whatever a seller and buyer agree on. I suspect you might be wondering if home assessment values are inflated. Absolutely! I would love to sell my house for what the assessor says is the market value. I think the assessor's letter re: valuation should also be an offer to purchase. LOL!
Its too bad that in many cases what the buyer and seller both agree on, does not match what the buyer could actually afford. Hence the foreclosures.
Most of the homes in Nassau county are way overpriced. Home prices that were priced 2002 are now doubled now. It's very sad that many middle class families can't afford to move into these homes now.
Doesn't seem like what your parents sold their house for in 2000 was overpriced at all, but then I don't know what town it was in, either.
I thought, in general, (excluding times of inflation and depression) that the average amount house prices go up annually is 6%. If that's so, and I assume someone else here WITH TRUE KNOWLEDGE will know the exact statistic on that, your parent's house value hasn't even gone up as much as expected.
Doesn't seem like what your parents sold their house for in 2000 was overpriced at all, but then I don't know what town it was in, either.
I thought, in general, (excluding times of inflation and depression) that the average amount house prices go up annually is 6%. If that's so, and I assume someone else here WITH TRUE KNOWLEDGE will know the exact statistic on that, your parent's house value hasn't even gone up as much as expected.
It's like that line from the infomercials with a guy sitting on his yacht with servants running about - previous performance does not guarantee future results, YMMV.
Somehow can't get my head around the math of 6% with those exclusions... I prefer the must simpler formula of incomes to values and rent income to own scenarios. Neither is anywhere near where they need to be for Nassau - and pretty much everywhere.
Doesn't seem like what your parents sold their house for in 2000 was overpriced at all, but then I don't know what town it was in, either.
I thought, in general, (excluding times of inflation and depression) that the average amount house prices go up annually is 6%. If that's so, and I assume someone else here WITH TRUE KNOWLEDGE will know the exact statistic on that, your parent's house value hasn't even gone up as much as expected.
Since WWII, it has averaged between 3%-5% per year (with the 5% being for homes to which significant improvements have been made).
Doesn't seem like what your parents sold their house for in 2000 was overpriced at all, but then I don't know what town it was in, either.
I thought, in general, (excluding times of inflation and depression) that the average amount house prices go up annually is 6%. If that's so, and I assume someone else here WITH TRUE KNOWLEDGE will know the exact statistic on that, your parent's house value hasn't even gone up as much as expected.
Home prices usually follow inflation (around 3%), until a bubble. The bubble went up 270%, now its down to about roughly 200%. Definitely inflated.
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