Submitted by odensleep_530 t3_109o52u in personalfinance
Had to relocate for work to Atlanta in 2022. Housing market was extremely hot but we did not want to rent due to a prior bad experience. After 30 offers on other homes, we ended up purchasing a 5 year old, 4 bd 3,000 sq ft home for $515,000 @ 5% interest. It’s in a subdivision with amenities and in a good school district.
Unfortunately, today a similar sized 4 bd home four houses down, which started on the market a year ago at $525,000, dropped their price today to $445,000. What?!?
That quickly has my home lost 14% of its value? We plan to live here for maybe 5 years min, 10-15 max, and while I don’t see my house as a liquid asset, this is making me anxious. I feel like this is 2008-09 again where I now own an asset which won’t increase in value for a decade.
Any tips for how to soften the blow and maybe control the things I can control?
-Mortgage rates are still above 5% so refi is not an option IMO. -Do we limit or cancel our annual budget for upgrades work we do to the house if there’s low potential to see an ROI?
Thanks