When I went outside to get something out of my car this morning, I casually scanned my neighborhood as I usually do and what did I see? Another house just went on the market. I don't understand why people who don't really need to sell are trying to sell a home in this cluttered, slow-moving market. In addition to that, my subdivision is still pretty new (less than 2.5 years old) and they are still building homes. The new homes they are building are priced a little bit higher than what the original owners paid but they are offering over $15,000 in incentives. Why buy a used house when you can get a new house for less? I've seen some homes sitting on the market for over a year.

Of all the listings in my subdivision, this one interests me the most. The house is on my street, has the exact same floorplan and is the only one like it for sale. The owner is asking $205,000 which is great for me. I paid $189,140 for my house about 2 years ago and I think it is worth about $196,000 with the upgrades I've added. If he manages to sell for $205,000, $200,000 or even $198,000 I'll be doing cartwheels up and down the street (not really). I'll then have an actual comparable home to really find out what my home is worth.

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  1. Noel Larson // February 9, 2008 at 3:21 PM  

    Unless you have to move for a job getting scared and losing equity is silly.

    5-years from now, unless we are in a depression, my house will be worth more that it is today. I want that appreciation towards my net worth. Our house for the foreseeable future is our biggest asset.

  2. SingleGuyMoney // February 10, 2008 at 12:35 PM  

    @racerx: I sure hope my house value continues to increase and not decrease!

  3. JesieBlogJourney // February 12, 2008 at 8:18 PM  

    I find that most of the $200,000 and below single family homes in a good neighborhood is not overpriced and there is nothing much to worry about. However, if the cost of rebuilding is way below $200,000 then there is something to think about.

  4. adfecto // February 14, 2008 at 2:49 PM  

    I know exactly how you feel. I also bought my house for about $189k (but 6 months ago) in a neighborhood is still being built out (for slightly higher prices - 3%). One of the houses up the street built about a year ago put out a For Sale sign, and I was immediately curious what price they were asking. It turns out that they would break even if the house sold for the asking price, but I don't know how long it would sit on the market if they holdout for the asking price.

    Logically I'm with racerx because I know I will not be moving for about 6-7 years, BUT I also know what you mean about wanting to see the value go up, Up, UP. For my 2008 net worth calculation I have frozen the value of my home until I get a sold comp. to set a price. I think set it and forget it is the right approach for now.