U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-26-2021, 04:07 PM
 
143 posts, read 95,774 times
Reputation: 229

Advertisements

I purchased the house in late 2018 for $170,000. For early June of this year, the Zillow estimate was showing $208,000. Now today it's $230,000. I checked the other websites such as realtor and trulia and the estimates are the same. Any reason why this is happening?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 06-26-2021, 04:26 PM
 
Location: Cary, NC
38,740 posts, read 67,030,471 times
Reputation: 39483
Quote:
Originally Posted by blue777 View Post
I purchased the house in late 2018 for $170,000. For early June of this year, the Zillow estimate was showing $208,000. Now today it's $230,000. I checked the other websites such as realtor and trulia and the estimates are the same. Any reason why this is happening?

You are in a market that is appreciating and the online appraisals are playing catch up to the values as more sales close.
Of course, online appraisals are typically meaningless.
The quick rise recently is probably because of closings in May and June from April listings.
Where I am, April is the hottest listing month, with people wanting to sell as soon as the kids are out of school.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-26-2021, 06:26 PM
 
Location: Orange County, CA
1,025 posts, read 261,278 times
Reputation: 1034
The $208,000 estimate is 7% annual which is pretty normal. There are other places that increase at 10%, or 4%. It depends on your location.

The increase to $230,000 in a matter of 3 weeks amounts to 570% which is kind of meaningless because you don't actually expect your property to be worth 1.2 Million by this time next year.

The short term fluctuations just come from recent sales in your neighborhood.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-26-2021, 06:36 PM
 
63 posts, read 23,541 times
Reputation: 115
Because there is a once in a century global pandemic that has created an exodus from the cities along with 3% rates and work from home paradigm shift.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-26-2021, 10:37 PM
 
Location: South Park, San Diego
5,840 posts, read 9,142,084 times
Reputation: 11561
Our house value went up $200k last month, 16% ($20k more than we bought it 25 years ago) according to Zillow. It’s just the algorithm reacting to recent nearby closings and doesn’t necessarily mean that much wherever it’s happening for that short term. Best to assess every six months or so.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-27-2021, 12:52 AM
 
Location: Phoenix, AZ
4,101 posts, read 2,231,950 times
Reputation: 11019
Quote:
Originally Posted by blue777 View Post
I purchased the house in late 2018 for $170,000. For early June of this year, the Zillow estimate was showing $208,000. Now today it's $230,000. I checked the other websites such as realtor and trulia and the estimates are the same. Any reason why this is happening?
Demand is being fueled by low inventory and low interest rates.

I'm seeing the same thing in Phoenix. I bought my house for $238,000 in June 2019. Current Zestimate is $362,200, up $37,590 (+11.6%) in just the last month. And, guess what, 5 comparable houses in my subdivision sold since April between $350,000 and $400,000. It's not just imaginary.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-27-2021, 08:50 AM
 
Location: Phoenix, AZ > Raleigh, NC
17,461 posts, read 23,127,799 times
Reputation: 29774
Quote:
Originally Posted by DrPibbs View Post
The $208,000 estimate is 7% annual which is pretty normal. There are other places that increase at 10%, or 4%. It depends on your location.

The increase to $230,000 in a matter of 3 weeks amounts to 570% which is kind of meaningless because you don't actually expect your property to be worth 1.2 Million by this time next year.

The short term fluctuations just come from recent sales in your neighborhood.
Proving, yet again, that Zestimates are meaningless.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-27-2021, 08:51 AM
 
Location: Orange County, CA
1,025 posts, read 261,278 times
Reputation: 1034
Quote:
Originally Posted by adjusterjack View Post
Demand is being fueled by low inventory and low interest rates.

I'm seeing the same thing in Phoenix. I bought my house for $238,000 in June 2019. Current Zestimate is $362,200, up $37,590 (+11.6%) in just the last month. And, guess what, 5 comparable houses in my subdivision sold since April between $350,000 and $400,000. It's not just imaginary.
Seems to me $238,000 for a house in Phoenix in 2019 is WAY undervalued. In LA you can't even get a 400 sqft studio for $500,000.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-27-2021, 09:01 AM
 
3,787 posts, read 1,827,320 times
Reputation: 4837
Quote:
Originally Posted by Jkgourmet View Post
Proving, yet again, that Zestimates are meaningless.
They aren’t meaningless. I’ve found them to be close to selling prices.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-27-2021, 09:02 AM
 
4,326 posts, read 4,384,294 times
Reputation: 5947
I feel like Zillow always wildly overestimates values. Not sure if they're just trying to scare people into buying for fear of constant price increases while simultaneously encouraging home owners to sell for hugely inflated values to try to cash in. Seems like an artificial pump machine. Our realtor's algorithm is no where near as bullish on prices as zillow's estimates often come in at. Zillow always seems to be high compared to all other websites, at least in our area.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top