Yesterday Benton Builders began preparing the lot next door for the two houses they plan to build. We recently learned they will be $600,000 homes. That's crazy!
In today's market, we would be happy to get $250,000 for our home. Eighteen months ago, the house next door, which is twice the size of ours, sold for $330,000. Before the recession, our home was worth nearly $300,000 and the neighbor's was valued at over $400,000. Clearly, things have changed.
Even with the current unemployment rate, I understand that there are still people who can afford a $600,000 home. But why would they want to live in a neighborhood where the average home is $225,000?
One of the key rules of real estate is not to own the most expensive house on the block. The belief is that, if your house is surrounded by more expensive homes, its value will stay steady or, more likely, increase. If that rule's still true, I guess our home just became more valuable. But who knows for sure? If $600,000 homes are being built in our neighborhood, the current real estate market is a mystery to me.
*10 Grandma Days until Easter Break*
**34 Grandma Days until End of School Year**
No comments:
Post a Comment