There was an article in the paper this past week that said home prices are up 5.2 percent over the same time last year. As soon as I read that my first thought was I’ll probably get another call or two from folks that are ready to sale. Then I thought, well I must be doing something right because I get these calls every month.
The problem is, people tend to misinterpret this to mean their home values are going up by this amount. This year over year increase however is starting to taper off a little.
Sure enough I did get “3” more calls this week and these numbers were a little more in line with the increase in values from a year ago. Up until now though, they have not been.
A 15% or 20% increase in home prices does not mean your home value has increased that much. Unfortunately I have lost a listing or two this year as my CMA was not enough to convince the sellers of this fact.
Last month the same news was, prices had increased 10% year over year for May. I did a CMA for a seller at $125,000 which is what he paid for it a mere year ago. The comps in his area showed very little increase at all in value.
In his eyes though his house was suddenly worth $137,500. I looked a week later and he had it listed for $145,000. I checked the other day and he had taken it off the market.
My thoughts were, I guess he had to figure it out on his own and waste some other poor Realtors money!