[twoplanekid]

As I enjoy watching the housing market in TV, I find it amazing what sellers are able to do in this current market. I monitored a home for sale almost identical to mine that was purchased in the same year. The original listing was $400,000 in late December. The first of January it went up to $450,000. After a few days at this price the listing went pending. After a few more days it came back on the market at $475,000. I noticed today it went back to the pending status. I am so happy I purchased my house in 2014 and still enjoy living in it today. However, now is the time to sell if your thinking about it.

[davem4616]

nice return on one's investment, but then you have find someplace else to live

[Michael G.]

If you sell just to make a profit, you will spend the profit on something else unless you settle for something smaller

[rustyp]

Let's cure this euphoria:

Two years ago if you had a $200K house and wanted to move up to a $300K house it would be the difference plus 6% to sell you house. Thus $100K + $12K = $112K to move up.

Now in this heated housing market your little gem increased 50%. $200K x 1.50 = $300K.
Likewise that new house you desired increased 50%. $300K x 1.50 = $450K
Don't forget the 6% to sell your house which now equals $18K instead of $12K.

Thus to make the same move today is the delta between the two houses $450K - $300K = $150 K plus the $18k =$168K.

Let's recap sell two years ago and move up = $112K
Same exact sales today to move up = $168K
POOF - The winner is the real estate agent.

[manaboutown]

Originally Posted by rustyp

Let's cure this euphoria:

Two years ago if you had a $200K house and wanted to move up to a $300K house it would be the difference plus 6% to sell you house. Thus $100K + $12K = $112K to move up.

Now in this heated housing market your little gem increased 50%. $200K x 1.50 = $300K.
Likewise that new house you desired increased 50%. $300K x 1.50 = $450K
Don't forget the 6% to sell your house which now equals $18K instead of $12K.

Thus to make the same move today is the delta between the two houses $450K - $300K = $150 K plus the $18k =$168K.

Let's recap sell two years ago and move up = $112K
Same exact sales today to move up = $168K
POOF - The winner is the real estate agent.

And one's real estate taxes will be higher due to to the higher price of the purchased home.

[MrFlorida]

Doesn't matter, sell for more, then pay more for next house...when the market calms down, you sell for less, then pay less for the next house....it's all relative. Relators and the tax man are making the most of this market.

[rustyp]

Originally Posted by rustyp

Let's cure this euphoria:

Two years ago if you had a $200K house and wanted to move up to a $300K house it would be the difference plus 6% to sell you house. Thus $100K + $12K = $112K to move up.

Now in this heated housing market your little gem increased 50%. $200K x 1.50 = $300K.
Likewise that new house you desired increased 50%. $300K x 1.50 = $450K
Don't forget the 6% to sell your house which now equals $18K instead of $12K.

Thus to make the same move today is the delta between the two houses $450K - $300K = $150 K plus the $18k =$168K.

Let's recap sell two years ago and move up = $112K
Same exact sales today to move up = $168K
POOF - The winner is the real estate agent.

FYI The real estate agent netted a 50% increase. Was there any more work involved ?

[Stu from NYC]

Supply and demand. Can make a large profit on the house we purchased here two years ago but whats the point.

[twoplanekid]

If you don’t need to sell, then don’t. However, I find it amazing that one could start with a price in late December and then end up selling a house after one failed attempt for an amount almost 20% higher in only one months’ time. Maybe the first asking price was too low at about 46% more than the purchase price?

[Garywt]

Same thing is happening everywhere. My north house was $200000 in 1995 and is $800000 today but offers would come in $50-100k over asking. If I sell and we are not ready to full time in Florida then I lose.

[toeser]

Originally Posted by twoplanekid

As I enjoy watching the housing market in TV, I find it amazing what sellers are able to do in this current market. I monitored a home for sale almost identical to mine that was purchased in the same year. The original listing was $400,000 in late December. The first of January it went up to $450,000. After a few days at this price the listing went pending. After a few more days it came back on the market at $475,000. I noticed today it went back to the pending status. I am so happy I purchased my house in 2014 and still enjoy living in it today. However, now is the time to sell if your thinking about it.

Yeah, I think the housing party is just about over again. Once mortgage rates start to march upward that will put a damper on ever-increasing prices. If the Fed loses complete control over inflation and has to really ratchet up rates, housing prices will fall.

[Blackbird45]

By now most of us have lived long enough to have watch housing prices go up and go down.
It's just numbers.
Unless you are investing in properties to build up capital, whatever one earns on one end they will spend on the other.

Relax this is going to pass and a new problem will surface to replace it.

[Sinkorslim]

Originally Posted by rustyp

Let's cure this euphoria:

Two years ago if you had a $200K house and wanted to move up to a $300K house it would be the difference plus 6% to sell you house. Thus $100K + $12K = $112K to move up.

Now in this heated housing market your little gem increased 50%. $200K x 1.50 = $300K.
Likewise that new house you desired increased 50%. $300K x 1.50 = $450K
Don't forget the 6% to sell your house which now equals $18K instead of $12K.

Thus to make the same move today is the delta between the two houses $450K - $300K = $150 K plus the $18k =$168K.

Let's recap sell two years ago and move up = $112K
Same exact sales today to move up = $168K
POOF - The winner is the real estate agent.

Sell it yourself

[donassaid]

And the tax man, not to mention that your HOA's just went up to $179/mo.

[joseppe]

The key to leveraging is to not put all of the proceeds into the new property. Take a 100k gain on a sale purchase the next property with 20% down which leaves you with cash from the sale and a higher priced property that should appreciate now at a faster rate. Do the same thing in 3 or 4 years and you can see how it continues to build. YOU may not want to play this game, but many do and make a lot of money doing it. Wealth is usually gained from real estate and business undertakings and not you typical 9-5 job.