The housing bubble has burst! Domain has now brought the same APM PriceFinder property price estimates to everyone in Australia. As of April, the median home value of properties sold was about $287,240, according to information from RealtyTrac. As our cover leader this week explains, despite efforts to fix the plumbing of the American mortgage market, housing in the United States remains a dangerous menace to the world economy.
A buyers’ market may cause downward pressure on house prices, perhaps as much as 3% to 5%. Conversely, a sellers’ market may cause upward pressure by 10% or more, depending on housing availability in a particular area. Real estate agents figure out your home value by comparing it to similar properties that have sold in the past year.
Using this and data entered in by homeowners – things like features of their particular home – Zillow comes up with a price that a home is worth. Home values rose 0.6% nationally in July, and posted a 4.78% year-over-year increase, according to the Quicken Loans HVI.
2. From what we can see, the real estate market is not going to crash. Zillow is a useful tool, but it does not provide enough accuracy on home prices to be used exclusively. For my childhood home, the value was spot-on with Zillow’s (value: $150,426), but they were unable to give me any data on the rental property (value: unknown).
In San Bernardino County, the median rose 5.7% to $351,000, while sales climbed 6.5%. Once prospective buyers see that a house lingers too long in the market, they soon realize that something is wrong with it. But do not make your price too low either since you will miss out on considerable profits as well.