Realizing home equity gains

[CDP45]

Hello,

Prices are getting bubbly where I live, and similar houses in my sub-division have sold for $100,000 more than what I paid for mine 2 years ago ($300 vs 400k) and prices are still going up.

Given my youth, my current net worth is lopsided toward home equity.

Basically it seems like I can get a bigger house for about the same price I can sell my current one at, or live in a better area with better schools and not have to pay for private school.

Any info or threads on this topic or advice?

[MDM]

Basically it seems like I can
a) get a bigger house for about the same price I can sell my current one at, or
b) live in a better area with better schools and not have to pay for private school.

Of the two, "b" seems the more reasonable justification.  But much depends on unwritten details so YMMV.

[RexualChocolate]

This is what is called 'market timing' and can work based on pure luck.

You benefitted one way, you can also get crushed the other way on this trade. The government bails out the latter every once in a while, but that again takes luck.

From a personal finance perspective, buying a bigger house than you need is a luxury purchase and you will have to determine that value yourself.

You said your net worth is lopsided towards real estate, then the next sentence you want to keep that amount of money in real estate. These two don't logically follow.

Houses from a balance sheet perspective should be valued as yielding the amount of rent they are saving you every year, minus costs. They rarely come out on top.

I would stay put in the house. No reason to move.

[waffle]

Unless you are moving to a lower cost area where you can actually cash out the gains and still have a house that fits your needs, or moving to a better location closer to work that will lower your expenses I'd say stick with your current house.