(NOTE: This post is an updated copy of my 2013 post [see also: 2012, 2011, 2010, 2009, 2008])
(Check our your property value using the official Fairfax county link.)
THE BASIC SUMMARY: Our real estate assessment grew 5.1888% — more than it has 8 out of the 14 years we’ve lived here. I guess things are back on track?. A 5.18884351% increase , which is a less than the average of yearly gains (7.3% a year on average, as of 2014), but way more than last year’s 0% increase. This would be a better than average year if the ridiculous bubble in 2004-2005 didn’t artificially inflate the average.
Our house went up 10.00183% — the most since the addition.
Our land stayed at the same value.
Our real estate value increased $1,365 a month. Our mortgage is currently about $1090, and includes all taxes & insurance. It’s almost like we’re getting paid $275 to live here, but then I remember this house comes with other associated costs: Electricity, internet, home warranty, trash, water/sewer, and maintenance.
In 1999, we bought the house at $141K.
In 2000, we were assessed at $142K.
In 2001, this grew by 3.5% to $147K.
In 2002, this grew by 39% to $205K.
In 2003, this grew by 3% to $211K.
In 2004, this grew by 24% to $261K.
In 2005, this grew by 34% to $349K.
In 2006, this grew by 13% to $395K. [addition basically complete]
In 2007, this grew by 3% to $406K (peak)
In 2008, this dropped by 7% to $375K. [addition officially complete]
In 2009, this dropped by 3% to $364K.
In 2010, this dropped by 18% to $298K. (ouch)
In 2011, this grew by 3% to $307K. (Finally a gain!)
In 2012, this grew by ~3% to $316K.
In 2013, this remained at $316K. (Hmm...)
In 2014, this grew by 5% to $332K. (back on track)
We’re 18% down from our peak value. (But not 22% like last year, or 37% like 4 years ago).
We still owe $131.8 on our mortgage [2013/12=$133.9K/$136.1K].
The house is worth 2.52X more than we owe on the mortgage (2013/12/11: 2.36,2.32,2.27).
In 2014, we owe about $2100 less than we did the prior year. That is how much principal was paid this year. [2013=$2000. 2012=we owed $700 MORE than the prior year due to refinance costs to get a $260/mo cheaper mortgage payment].
So we are still ahead (“ahead” means “assessed value minus what is owed on the mortgage”) by $200.5K (2013/12/11/10=$182.0,179.8,171.7,163K).
Our gain in getting ahead was $18.4K this year ($1538/mo), which was greater than previous years’ gains (2013/12/11=$2.2,8.1,8.7K).
We’ve lived here 14 years now [actually 15--next year I will use the right number of 16! All my numbers have always been slightly off!], so that’s a running average of getting $14,318 ahead each year. This running average had been declining, but is now gaining: 2013/12/11=$12,997/14,903/15,609.
Per month, that is $1193 ahead each month, for all months that we’ve lived here. [2013/12/11=$1083,$1249$1300]. Considering that we took $30K out of the house to pay for an addition, that’s a pretty good rate of return.
Our mortgage is now up to $1058.76. (2013=1025 after refinance,2012=1300), so this place seems to literally be paying for itself: It’s value goes up more each month, on average, over the entire time we’ve lived here… Than how much we pay each month! Well… Not counting those “associated costs”, anyway.
(Of course, the addition wasn’t free, it was about $80K, so we’re really only $120.5K ahead (2013/12/11=$102.0/99.8/91.7K), or only $8,604 ahead per year (2013/12/11=$7,283/$8,317/$8,336), or only about $717 (2013/12/11=$606/$693/694) ahead each month. Still not shabby.))
These people who say houses aren’t a good investment don’t know what they’re talking about. Even if it’s value drops 90%, you’re still getting 10% more of your money back than if you were renting! And we’re sure as hell doing better than dropping 90%… We’re getting double our money back, assuming value holds.
We also have way more living space than people who pay the same amount: 2500 sq ft @ 1025/mo = 42.35 cents per square foot per month [2013=41]. Renting space in D.C. is often paying 3X as much per square-foot-month as what we are paying. And that’s with no yard or parking. It’s amazing how much more you can get when you don’t demand every little thing be perfect.
Here’s the new graph:
Broken down via land vs. building:
2002: $90K (+27%)
2003: $100K (+11%)
2004: $150K (+50%)
2005: $184K (+23%)
2006: $166K (-10%) [addition completed]
2008: $184K (+11%)
2009: $166K (-10%)
2010: $148K (-11%)
2012: $152K (+2.7%)
2001: $76K (+7%)
2002: $115K (+51%)
2003: $111K (-3%)
2005: $165K (+49%) [addition possibly counted here]
2006: $229K (+39%) [addition completed]
2007: $241K (+5%)
2008: $192K (-20%)
2009: $198K (+3%)
2010: $150K (-24%)
2011: $159K (+6%)
2012: $164K (+3%)
2014: $180K (+10%)
FOOTNOTE: 2006 was about when the construction was mostly finished, but due to problems with it being completely finished, it might not have been legally counted as finished until 2008.
RANDOM NOTE: The Google Chart Playground is very, very useful. Saves a lot of manual page refresheses…
Mood: did not want to type this up the day I re-installed windows!