[Normal]

Originally Posted by Runway48

There appears to be a normalization of housing prices. The average cost of housing over the past 30 years has increase around 4.5% but this is an average and includes some wild upwards and downwards swings. We are just exiting a wild upward swing that occurred during the COVID years where sellers were seeking and getting annual increases of 20-40%………If you bought recently, you will probably have to wait a while until you can expect to sell it for more than you paid.

A well kept home that sold in 2018 (Pre COVID) for 300,000 dollars would be valued today (2025) with a 4.5 percent inflationary point annual increase at about 400,000 to 410,000 dollars. That’s using average numbers as if we didn’t have the pandemic interruption of supply.

Some homes today are priced well above and beyond those reasonable numbers. Granted, annual inflation is supposed to be much less than 4.5, but percentages are adjusted upward about 1.5 percent to include inferred upgrading costs. Doing this attenuation gives simplicity to generalize what home prices need to settle at.