There are a lot of people asking how home prices doubled in just 2 years. To begin with, there are many factors that contribute to home values such as building cost, inflation, supply and demand, and land value appreciation. Recently, I got a lot of shade on TikTok for my price reduction on the property at 14909 Mahoe.
We had one viewer go and look up public records and state that we only paid for the property for a little over 400 thousand in 2020, insisting that’s really where the value should be. In this article, I’ll be explaining why the value will never be 400,000 again.
Let’s talk about the cost of building, the cost of labor, and inflation. For context, the property is a 2,700 sq. foot home.
First of all, you’d have to be able to buy the lot. So you got the lot for $50,000. Next, you’d have to recreate that home for $350,000 for a 2,700 sq. foot home. You’re talking around 100 to $120 per square footage, however, you can no longer do that today. To build a nice home based on current prices, it could easily range between 250 to $300 a foot.
Now, this property is a fully customized Arthur Rutenberg home with a lot of upgrades and features. It’s got a pool, a spa, and a huge lanai area with landscaping worth $100,000. It’s a high-quality home.
This beautiful custom home had no water or roof damage from Hurricane Ian, and the gorgeous backyard with a pool, spa, and lanai is simply incredible. Solid wood cabinets and other high-end finishings and features round out why this property has nearly doubled in value since it last was on the market in 2020!
Watch the full YouTube video here:
We may see a lull in the prices for a little while because of interest rates, but we’re not going to see prices go down. With building material and labor costs rising, properties like 14909 Mahoe are jumping in value.