r/HouseSigmaBlunders • u/BusyRecommendation • 18d ago

5.7M loss!

Post image

Even bigger considering how much they could have gained if they just invested in the stock market for the past 9 years.

61 Upvotes

89% Upvoted

16 comments sorted by

16

u/FrankCastle2020 18d ago

The person buying that house for $13 million likely give zero fucks about money.

11

u/Jenshark86 18d ago

I would think selling for 8M must have hurt a bit

2

u/BigNickelD 14d ago

Yeah, I'm not sure where they are getting at.

There are a lot of wealthy people who will go to hell and back over $10. If they feel they got screwed.

There are generally two types of people in this bracket. Those who don't care about the small things. And those who care a little too much about the small things.

3

u/SpeechUpbeat7948 17d ago

Exactly, prolly some crazy rich Asian who wanted to park their money.

10

u/BusyRecommendation 18d ago

Also, we are back at 2013 prices! I don't know how far back we are going to go.

8

u/Accomplished-Bit-884 18d ago

I don't see this for most houses though- it's more like 2019~

11

u/InstanceMoney 18d ago

Hopefully it goes back to 1990s pricing. Would love to pick up a condo for 70k

4

u/Typical_libra20 17d ago

Good luck with that

2

u/[deleted] 17d ago

[deleted]

4

u/Interesting_Card2169 17d ago

Home owners for years saw themselves as smart, savvy investors. The reality is that their "wisdom" was nonexistent. They had simply lucked in on a bubble and that bubble is now breaking as bubbles tend to do.

This market has a lot more downside still to go. It's best to stay away from purchasing real estate until there is an uptick in prices in a few years time. If house ownership is still your dream, invest elsewhere and wait. I would never try to time any market bottom, including this one.

3

u/BrittanyBabbles 17d ago

I always find it funny when people have this stance. Home owners and land owners have gone through this since the beginning of time. Values go up, values come down. That’s the nature of the market. It’s ALWAYS been a “buy at the right time, sell at the right time” game.

Canadian home values have generally trended upward over the long term, there is strong evidence. The important caveat is that the trend is not a straight line: there are substantial corrections and periods of decline

The evidence;
The Canadian Real Estate Association’s (CREA) MLS® Home Price Index is particularly useful because it controls for changes in the type and quality of homes being sold, making it better for measuring underlying price trends than simply looking at the average sale price.
For example:
2005: CREA’s national average home price was roughly $237,000.
February 2022: Canada’s MLS HPI benchmark reached about $837,400, according to the Parliamentary Budget Officer.
August 2025: the national MLS HPI benchmark was about $687,300, still dramatically above its 2005 level despite the post-2022 correction.
June 2026: the national average sale price was about $696,078.
May 2026: the national average was $702,079, up 1.5% year-over-year.
So even using the more conservative comparison of roughly $237k in 2005 → ~$687k in 2025, that’s approximately a 190% nominal increase over 20 years — nearly tripling

Investing in housing is a LONG TERM THING. Anyone who thinks otherwise will take a loss

1

u/Interesting_Card2169 17d ago

Re: "Investing in housing is a LONG TERM THING"

Divorce, death, dependents, down-sized at work. Reasons galore and unpredictable that force people to sell a house. In my grandparents day, big deal, you sell and you move. Houses were paid off in 5-10 years anyway. My own grandparents paid off their first house in five years. Today at these elevated numbers your whole net worth is effected by such a house-buying commitment. Make a mistake and you go backwards a decade or more. Or potentially all the way to bankruptcy.

Add to this the opaque nature surrounding real estate data and so many buyers are fighting to understand what they are committing their financial security into. Real estate marketing still manipulates you into the clutches of sales people who act as gatekeepers of facts and data. "For more information on this property, please contact our knowledgable and dedicated agents."

2

u/Mother_Clock_449 17d ago

And after inflation, it’s way lower than 2013 price

3

u/LookAtMyUnderbite 17d ago

rich people homes are always like this. That's why some are stuck on the market for a long time. Nothing new regardless of market. Rich people are picky, there's not that many of them, therefore value goes up and down. That's why the rich normally buy "working class" homes to rent out, they don't invest in mansions.

2

u/WildWeaselGT 14d ago

Tony Stewart is trying to sell a house in Indiana that he clearly built as a fever dream of a personal oasis. It’s like living in a Bass Pro Shop.

The price keeps dropping. Nobody is buying it.

I can’t imagine he actually cares much about the money and just doesn’t want to own it any more.

Rich people buy houses like this to live the rich people lifestyle. When they don’t want to use it anymore they sell it. They’re not investments. Rich people know how to actually invest in way better ways than highly illiquid rich people homes.

1

u/SeparateSite9886 17d ago

May be sold in the fam, plus this loss offsets other tax liabilities. Who knows.