What "might" it be worth now......?

dopester

chewmylegoff wrote: »

it's undoubtably a factor, but i think that saying Mr X paid Y for house Z therefore house next door to Z is now worth that much and can definitely be sold for that amount is a gross oversimplification of what actually happens.

OK then, what other explanation is there?

Asset prices rise not because of "buying" per se, because indeed for every buyer, there is a seller. They rise because those transacting agree that their prices should be higher. All that everyone else - including those who own some of that asset and those who do not - need do is nothing.

I'll grant you a little variation in the differences between different quality of properties, and whether they've had extensive improvements or not, but what brings about increases in value for property, is solely through those transacting at ever higher prices over the months and years.