Link provided by DL…thanks!
According to the Consumer Price Index calculations found on this page, which are supposed to take inflation into consideration, if in 2000, you bought a home for $500,000 then today in 2007, your home should be worth $580,508.
If in 2007 you buy a home worth $1,000,000 then in 2000 that home should have cost $861,313.
How does this play out for you, and is your home performing above average?
If you’d like specific comps for your home, give us a shout, as it is impossible to compare apples to apples with such a wide audience.
–What is a dollar worth? [Federal Reserve Bank of Minneapolis]
I do have the answer (in another city). I bought a condo 92K in 2001. my neighbor who bought the exact same one at the same date sold it last month at 210K. not bad..
And OF COURSE – at the time I thought – “what an idiot.. I bought at the peak time” ;-)
however, I do not believe in those maths. A car worth 30K in 2001 is NOT worth 35K today. Nor is the Picasso painting bought 20M in 2001 worth only 25M in 2007.
So for houses, a BRAND NEW kitchen in a new building in 2001 is now totally out of fashion, and a victorian house with original detailing is even more vintage and worth more.. (with a simple tasteful paint job)
so again.. Get real – and “If you’d like specific comps for your home, give us a shout, as it is impossible to compare apples to apples with such a wide audience.” – and I’d add: contact a CPA to learn about the impact of the value changes on your possible tax deduction, tax free amounts etc.
Doubling from 92K to 210K has NOTHING to do with increasing from 4.5M to 6M.