Rather than merely give you the heads-up on some new listings in Berkeley, I am inspired by my Sweet Digs neighbor Anna Hibble (and she by some nifty sales snapshots on Submedian), to look at the sort of
return on investment appreciation the owners of these homes are eagerly anticipating.
(First up is strange to say the least: a 7-bedroom bank-owned house for sale in Berkeley which last sold for $1,000 so the math doesn’t really work. But I had to include it as it looks intriguing.)
Asking: $606,000 (or $645,000 depending where you look)
Last sale: $1,000 (8.24.2007)
Difference: $605,000 in 5 months [or $121,000/month value increase!]
Last sale: $806,000 (6.8.2000)
Difference: $269,000 [or $38,408/year value increase]
Last Sale: $585,000 (1.10.2003)
Difference: $164,999 [or $41,250/year value increase]
Last sale: $105,500 (3/19/1997)
Difference: $484,500 [or $48,450/year value increase]
Update: In a comment to this post, a sharp reader pointed out the error of my ways in using the term “return on investment” rather than appreciation on an asset — hence my correction. Coincidentally, over at SocketSite at the same time a lively discussion has been under way about the difference between appreciation and added value.