Memphis House Values

I bought a house on Kaye Road near Eastgate Shopping center in 2007 for $90,000, spent $10,000 on it and sold it for $118,000 6 months later. That house is now worth about $120,000. Another house I bought near the University of Memphis in 2006 for $60,000 and put in $10,000 I sold for $86,500 at the peak of the sub-prime bubble. That house is now worth...get this...over $100,000! Why did the "cheaper" house appreciate more than the "expensive" house? Location, Location, Location! The houses near the University seem to be always more desirable because there is a steady stream of students looking to rent and parents wanting to buy regardless of the economy and interest rates. The moral is to invest in areas that are near University and in stable neighborhoods.

Is your propery appreciating or depreciating?

Just for laughs, I checked the Zillow prices on a few houses I bought and sold. One house in Nashville I sold bought for $53,000 and sold in 2004 for $105,000 has appreciated to $175,000! In less than 5 years, it has increased in value over 75%! This house is located in West Nashville at the edge of Belle Meade and Hillwood. Another house I built for $240,000 and sold in 2 years for $318,000 has depreciated to about $275,000. Why did one go up and one go down? Location. The larger, more expensive house is near Bellevue, which is about 20 minutes from downtown Nashville and there has been a lot of new construction out that way. Whereas the older house built in 1954 is in an established neighborhood where there is no new construction. What that teaches us is that for value, it pays to invest in stable neighborhoods.