Why does Redfin retrogress old data points?
Bought house in 2017 at a fair market value, with the recent drop after 2021 peak Redfin has reduced the actual price during 2017 by 150k. Is this even possible? Overall my current value is still higher than what I bought for in 2017 but I don't trust Redfin logic. Tc 450k
There was a post about this the other day. When prices go down, Redfin offsets the history so the curve always goes up. Zillow does not do that
Dropped the 2022 estimate by 600k on mine. Lol
They retrogress to smooth the curve and hide the rise and fall… they wanna paint a picture that real estate is always a rising asset which increases transactions since it’s in their interest… and at anytime they wanna hype up the values which keeps both sellers and buyers motivated… a stagnancy from either side hurts them bad… they are like stock brokers… You win or lose it doesn’t matter as long as there are lots of transactions, they win
Redfin has super buggy system.. same issue I called and informed.. but they said will fix.. if you change your house profile it will update from recent sales .. I informed this bug .. but no fix yet
Dont trust redfin or zillow for price histories
I used to work there. It's just easier to program that way. Maintaining a time series for every home is harder than just creating some fake curve and calling it a day. The thing is just a marketing gimmick anyway.
Ignore all app valuations for housing. Housing historically averages inflation + 2% per year. To find fair market value for your house, simply find inflation for 2018, 2019, 2020, 2021, 2022. Add 2% to each inflation number. Call this X for each year. Multiply your purchase price by 1.0X (or 1.X if it's 2 digits) for 2018, multiply that result by 1.0X/1.X for 2019, so on until you finish each year. That is what your house is actually worth. It does not matter if one fool or one million fools will pay more than it is worth - that does not actually change the value.
Wtf this is so wrong. In any tech city in the last 50 years values were growing way faster than inflatipn +2%. Local economic factors have a massive impact, as well as how wlee your house is built.
Just because people pay that does not mean it is worth that.