While Prices Have Dropped Drastically, Values Still Above Dozen Years Ago
LABELLE, FL. -- Home prices as we all know have taken a big dump in the last five years, but looking back to historical values, on average, Southwest Florida home values are about 20% higher then they were in the first quarter of 2000.
According to housing price indexes compiled by the Federal Housing Finance Agency, the highs in real estate were reached nationwide about the first quarter of 2007 and have dropped like a rock since then, but values are still above those in 2000.
An average U.S. $100,000 home in 2000 climbed in price to sell at a high of $166,000 in 2007. But, in southwest Florida (the Cape Coral/Fort Myers market) that $100,000 home would have sold for even more at it's highest point for $266,000 in 2007.
But even with the drop in price from 2007 levels, home prices are still well above 2000 prices everywhere.
That average $100,000 home is still worth about $120,000 in SW Florida. Other areas have done better, as the U.S. average value (of a $100,000 home purchased in 2000) is now at $140,000 and on the east coast in the Miami area the 2011 value is at $156,000, and $149,000 in Ft. Lauderdale.
Price appreciation since 2000 on a $100,000 home in SW Florida: (high point is 2007)
To find out how your home has fared from the date you purchased it, the FHFA has a convenient calculator. Click here to calculate your home's appreciation compared to any past date.
The calculator does not project the actual value of any particular house. Rather, it projects what a given house purchased at a point in time would be worth today if it appreciated at the average appreciation rate of all homes in the area. (The actual value of any house will depend on the local real estate market, house condition and age, home improvements made and needed, and many other factors.)
The House Price Calculator uses the FHFA Purchase-Only House Price Index for all states, including the District of Columbia, and for the largest 25 Metropolitan Statistical Areas and Divisions. For all other Metropolitan Statistical Areas and Divisions an Index using purchases and refinances is used.
The FHFA calculated appraisal values from millions of home sales and refinances to come up with the indexes which are compiled and published monthly.