[manaboutown]

Some housing markets have been crazier than others but most have gone up substantially. Several factors which vary from market to market have driven price increases. To name a few - historically low interest rates (preposterously low IMHO), Baby Boomer retirees relocating to warmer climes, bigger and nicer homes desired by those who work at home made possible by technology and due to the pandemic, people migrating from high cost areas to lower costs areas and for better school systems for their children, recent shortages and cost increases in lumber and other building materials, increased wages due to worker shortages in construction and other industries, during this last year much higher fuel and food prices, high inflation, an increasing number of shortages of critical items and so on.

I own a house in a small town in Northern Idaho in which my son and his family reside. I bought it in late 2017 for $390K. At that time our real state agent apologized for the price as it would have sold for $290K in 2016. Zillow now values the house at $868K and my son believes I could get more, much more for it. An LLC in which I hold a share just sold a Maryland commercial property for twice what I thought it might bring at best. Indeed it sold for 40% over what the highly experienced commercial real estate brokers specializing in that type of property believed it would go for.