[quote=sdrealtor]FYI, I saw a property today that was sold new for $435K in 1988. It was on a 1/2 acre well landscaped with a pool. Experience tells me people spend at least 10% on landscaping/window treatments/paint and about 20% when they put in a pool. Lets say they paid $500K in 1988. The house was in very nice condition but all original. Let see some guesses as to what you think the house was priced at today and what you all think it should be fairly priced at today.[/quote]
We’d need to know an address or at least an address of a comparable house/lot/location in the same neighborhood. Also, if it’s a custom home or a tract home with HOAs or other fees, etc. It totally depends on whether it’s in LC, Enc, RSF, etc., too.
This is just pulling a number out of the air, but if it’s around here, my WAG is about $900K-$1,000,000 if it’s not updated. Of course, I’ve seen some in that price range from the late 80s (another peak of the more “normal” housing cycle, and we didn’t see those prices until 1999-2001) now listed for only $700-$800K, so it really depends on where it is and what it is.
edit: Let it be known that I do NOT believe “real estate always goes up.” I think that cost inflation can actually take money away from what can be allocated to housing expenses. For instance, if health insurance for a family was $200 two decades ago, but is $1,200 today, and if college expenses have increased in the same manner (or food, energy expenses,etc.), it leaves LESS money for housing unless wages have risen proportionately for a large enough portion of the population. I also think that the decimation of defined-benefit pension plans and other “social safety nets” leaves less money for housing, since people have to save more for retirement or other emergencies. Then, there’s the debt burden so many have today. What we pay in interest (yes, rates are lower, but the debt burden is higher) takes away from what we can spend on everything else, too.
