Most homeowners realize that their property is worth somewhat less now than it was during the housing bubble around 2005. The problem is that most of them don’t realize just how much less. Here’s a couple tables that will help you figure it out. The tables are based on data for the Prior Lake, MN area only however, and could be different for other areas.
Percentages are based on price data from Northstar MLS as of 8/1/2012
For example: The median price in 2012 has dropped 12.49% from 2003, the median price in 2012 has decreased 23.04% from 2005, and the median price in 2012 has increased 1.99% from 2011. You might note also that the “average” sale price has increased 11.94% since 2011!
So if you bought a home in 2004 for $350,000, assuming no improvements and normal maintenance, the current value would be approximately $350,000 less 18.11%, or $286,615 based on median sales prices.
If you happen to be in or near the Prior Lake area, you can use the above tables to come up with a rough idea of what your home should sell for today. This might help with the sticker shock when you ask your friendly real estate agent what they think it should be listed for. You should still rely on the agent’s advice however since they will consider many more factors in determining your selling price. Even within one city or county there are often pockets where values have not adhered strictly to the averages. Some of those areas may have gone up/down more than other areas within the same locality.
As always, if you have questions or comments, send them my way. Happy house buying/selling!