LogFAQs > #974718588

Admiral_Zero posted...

I live in Los Angeles. I dont plan on selling my home, but according to Zillow the price of my home jumped $120,000 in 2 months. I did zero renovations. What determines the price of a home?

Current supply vs demand/competition for availability.

Currently house prices are jumping because it's

1:peak season
2: nobody is really selling because the interest rate for getting into your next home is unattractive
3: housing is still scarce

So whatever is making it to market is highly contested by people who have the money to afford high prices AND high interest rates, and the people who are selling are often in the same boat. Which tend to be rich people. This definitely influences prices.

Also goes without saying the the Zestimate is often inflated, which is how Zillow got themselves into trouble with their house buying arm of the business.