How To Use This Calculator
The home value calculator is a handy device that finds the value of your home on a given date using the Case-Shiller Index. You can use this home value estimator if you know either the property’s purchase price or its assessed value from another date. Therefore, if you’ve ever asked yourself, “What is the value of my home?” this home value estimator is the right place to find out the answer.
If you are considering taking out a loan to purchase a house, you may find our mortgage calculator helpful in the decision-making process. The home improvement loan calculator is an excellent tool to evaluate your repayment schedule if you’re taking out a loan to rehabilitate a property.
What is the value of my home?
Calculating the value of your home can be tricky since many factors come into play. The state of the economy, the availability of housing, and other factors can all affect the price of your home. Here are some of the most important factors to consider:
Economic growth: When the economy is doing well and people have more money, they’re more likely to buy homes. This can drive up prices.
Unemployment rate: If there are a lot of unemployed people, there may be fewer buyers on the market, which can lower prices.
Interest rates: The interest rate on your mortgage affects how much you’ll pay each month, which can impact the overall cost of your home.
Mortgage availability: In the early 2000s, there was a housing boom in the US because banks were offering mortgages to people who had bad credit. This increased demand and drove up prices.
Housing supply: When there aren’t enough homes available, prices can go up. When there are too many homes, prices can go down.
Home affordability: If homes become too expensive for people to afford, there may be fewer buyers on the market, which can lower prices.
Location: Where your home is located can also affect its value. A home in a desirable location may be worth more than the same home in a less desirable location.
So, what is the value of my home? You can follow the article to the next section, where we explain one of the methods of evaluating home prices or simply use the home value calculator.
How to find home value? Case-Shiller Index
A possible way of overcoming the difficulties caused by the complexity of the housing market is to use a well-established house price index. In the present home value calculator, we use the , a repeat-sales house price index for the United States.
The repeat-sales approach refers to the house valuation method that monitors the sale prices of the same real estate piece over time. The Case–Shiller index, which is calculated individually in twenty distinct metro areas, uses monthly data points from 1987 through to the present. This makes it possible to estimate your home’s value at a desired date with just a past purchase price or a past valuation.
How to use the home value calculator?
Now that you know how to find home value with the Case-Shiller Index, let’s take a look at the home value calculator, which effectively uses this index:
Select your metro area and give your home’s purchase price or an estimated past value.
Set the year and the month of the purchase or past evaluation.
Set the year and the month of the desired date for which you want to check your home’s value.
After setting these parameters, you will receive the following estimations:
The nominal home value, which is not adjusted by inflation. This is the estimated price you might expect if you sell the house on the given date.
The real home value, which is the inflation-adjusted value of the house. This tells you the house price with the dollar’s buying power from the reference date (date of purchase or past evaluation).
The increase/decrease in the nominal value compared to the reference date.
The increase/decrease in the real value compared to the reference date.
Disclaimer
The results of this calculator, due to some degree of generalization inherent in the employed method, should be considered as just a rough approximation financially. For this reason, and also because of possible shortcomings, the calculator is created for instructional purposes only.
