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In 2017, the average cost of a house in the US rose nearly 30% compared to the previous year, and house prices were up about 5% from 2016.
But the market is still far from perfect, according to real estate analyst Jeff Jensen.
“The average house today costs $2.5 million to $3.5 [million] and houses for sale in California and Texas are currently selling for as much as $8.6 million,” he said.
“For some buyers, that price is more than the value of their home.”
What’s your home worth?
We’re not suggesting you buy a house with a price tag of $1 million.
But, Jensen added, the prices listed in some online listings can give you an idea of what you might be looking at.
“I can’t tell you how many times I’ve looked at listings in the last couple of days and just realized that I should probably buy a home with a $1.2 million price tag,” he explained.
“It’s kind of a weird feeling.
I can’t believe how much I know about the housing market.
I have no idea what’s going on.”
So I think the next time you’re looking at a home, ask yourself, what do I really want to spend on?
“It’ll also help you think through the financial decisions you’re making, Jensen explained.
If you’re unsure what to buy, it’s worth taking a look at our guide to the best home buying tools for 2017.