Profile picture for garyboy

Why did my value of my home drop $29,000 in less than 10 days, when this area has been on a upswing

Less than 15 days ago our house was worth $ 300,000.in less than 10 days it has dropped in value by $ 21.000, all of Redding has been on a upswing for over 8 months. I'm not sure your evulatoin of the area is correct??? check your records, In Sept. your website showed that my house was valued @ $300.000,nothing has changed in the area but good,
  • October 14 2009 - Redding
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Answers (3)

Profile picture for sunnyview
Redding overall has been heading down according to the charts here. That along with a similar batch of low similar sales may be driving your Zestimate down right now. The market is in flux in your area. You can look for recent sales that might explain your houses valuation change, but in the end you have to remember that a Zestimate is not an appraisal.
  • October 15 2009
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Profile picture for space_acer

Lets take an example of a home in Redding up for sale.

2071 East St Redding Ca 96001
3 beds, 1.0 baths, 1,100 sq ft 

http://www.zillow.com/homedetails/charts/15229799_zpid,10years_chartDuration/

If you look up the sales history you would find it sold in 1998 for $132K.
Like many homes in CA.  Prices sky rocked over 200-300% in 10 yrs.

Has inflation or salaries increased over the past 10 years by 200-300%

No,  but the speculation by the public in RE and their appetite for risky 
Loans pushed prices well beyond any sane level of affordability.
Yes, homes were bought and sold like it was a dot.com stock.
Homes before the bubble were selling for 3x median incomes
using fixe rate 30 yr loans balanced by conservative lending at 20-30% of gross income. This is were we are heading back to now...


And finally after nearly 10 years of this insane buying they are falling
back to long term price trends… pre-bubble prices (1998) plus inflation
for the past 30 years… which in this case comes to some $180K in the
above example.  

The past summer 'blip' in prices was price volatility, an upswing seasonally,  Long term no one is saying prices will go back up to
prior highs.  Long term prices are correcting downwards. This is the
true recovery in RE prices.  

Have you ever known prices in California to inflate over 200-300% in a ten year period?  On top of that, have we ever seen so many home owners unable to make their mortgage payments.  Many in-fact have used ARM loans, because they couldn't use at traditional 30 year fixed rate loans when they bought 5 years ago, and now their rates are resetting. 



 
  
 



 



 
  • October 15 2009
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Hi garyboy,
There was likely some sale information that recently came into our system for nearby homes that have characteristics similar to yours.

Sometimes a certain type of home can be going down (e.g. condos or in a very specific area) while the overall area is going up.

Hope that helps.
Kristin

  • October 15 2009
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