The spring market of 2015 has arrived and many homeowners are wondering the same thing – what is my home worth now? Over the last few years we have seen the housing market dip and rebound. Over the past 7 years, state by state, city by city, and even neighborhood by neighborhood values have been on a roller coaster. Now that the economy has stabilized it is time to re-evaluate the market value of your home.
A Look Back at 2014
2014 was a strong year for home value growth. As the economy continued its rebound so did home prices. In specific neighborhoods this was very evident, increasing the average list price, median list price, and in some cases the total number of homes on the market. Below is a review of key areas:
||Average Price Increase over 2013
||Median Price Increase over 2013
What is my home worth, and why is it important?
Beyond looking at the larger market trends, the best indicator of your home’s value is what comparable homes sold for in your neighborhood or surrounding neighborhoods in the last 180 days. When neighborhood vary in size or finish, houses of the same size and finish within a close proximity tend to sell for similar prices. The average home in Cincinnati appreciates between 1%-2% annually.
What is the significance of knowing your home’s market value if you aren’t planning to sell:
- Home Owner’s Insurance – Is your home insured for the correct amount?
- Property Taxes – Is your home assessed higher than it’s actual market value? If so you can dispute your value to potentially decrease your tax bill.
- Renovations – Are the improvements that you are considering going to price your home out of the market in your neighborhood?
- Refinance or Home Equity Loans – Can you drop your PMI? Do you have enough equity out of your home to pay for another large expense (car, bat mitzvah, college, wedding)
Since knowing the value of your home is so important, what is the best way to value a home?
Comparative Market Analysis
When I perform a comparative market analysis I review all of the homes within a specific neighborhood or neighborhoods that have similar square footage, lot size, location, amenities, school district, and finishes. In order to determine what each component of a home is worth, I also run a regression analysis tool. If you have a 4 bedroom vs a 5 bedroom house – how much is that extra bedroom really worth? How much does an updated bathroom impact your value? Finished lower level? These questions can be addressed through my analysis.
What is the return of your investment if you make these or other improvements to your home. These are all questions worth considering when determining the market value of a property. I am always willing to help my clients and personal network evaluate home improvement projects before they make the investment to determine the ROI (return on investment) for that project or improvement.
Location, Location, Location
The location of your home is one of the biggest factors in its saleability and value. A recent article from Cincinnati.com provides some details on the highest and lowest performing areas of Cincinnati.
Tell me what my house is worth
If have thought about selling and are curious what your house is worth please feel free to contact me about a confidential CMA. Complete this form and I will contact you to set a time.