Friday, March 11, 2011

Do prices increase the same percentage in all price ranges?

I had another question from a client that I thought I would share with you
along with my answer

The question was:

Hi Mark,

Thanks for the great web site - I am trying to determine the price appreciation of a particular home that was sold in 2004

Your graphs at http://www.mississauga4sale.com/TREBprice.htm#graph suggest a 25-35% increase from 2004 levels for average home prices $300k -$400k range.

I was wondering if you thought the relationship would hold for houses higher than the average i.e. can the 25%-35% be applied to the higher price ranges??

Or is there data that indicates that more expensive homes appreciated at slower rate?

Thanks for you help

F.

This is my answer:

Hi F .,

Thank you for your real estate inquiry and kind comments.

The data that I have looked at over the past couple of decades indicates that the more expensive homes tend to increase at a higher percentage than the average.

If the purpose of your study is for a truly important purpose, it may be prudent to have an appraisal performed on the property. The cost would only be about $250 to $300 or so, but as I said, if it's important, it well worth the investment.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

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