I just updated my net worth spreadsheet for Q1 2026, and I had to stop and stare at the number.
My house—the same house I bought in March 2020 for $385,000—is now worth $593,000 according to Zillow. That’s a $208,000 gain in 6 years, or 54% appreciation.
For context: If home prices had followed the historical 4% annual appreciation trend, my house should be worth around $487,000 today. Instead, it’s $106,000 above that.
This raises a question I’ve been wrestling with: How do you track real estate value in Beancount when the market has moved this much?
The 45% Home Price Surge Since 2020
I’m not alone in seeing this appreciation. Nationally, home prices have climbed 45.3% from February 2020 to February 2025—packing “more than a decade’s worth of typical growth into just five years.”
Some markets saw even more dramatic gains:
- Q1 2020 to Q3 2025: National prices up 54.9%
- 2021 alone: Home prices jumped 18%
- 2022: Another 11% increase
What drove this surge:
- Ultra-low mortgage rates (2020-2021)
- Pandemic-driven housing demand (remote work, flight to suburbs)
- Limited housing inventory (supply shock)
What’s next:
- NAR projects 3% growth in 2025, 4% in 2026 (moderating back to historical norms)
This means if you bought a home in 2020 and haven’t updated your Beancount ledger, your net worth is off by 45%+ on that asset.
The Problem: When Do You Update Property Values?
In Beancount, your home is typically recorded like this:
; Purchase (March 2020)
2020-03-15 * \"Closing\" \"Home purchase\"
Assets:RealEstate:Home 385,000 USD
Liabilities:Mortgage -308,000 USD ; 80% LTV
Assets:Checking -77,000 USD ; 20% down payment
Expenses:RealEstate:Closing 12,500 USD
note: \"3BR/2BA, 1,850 sq ft, purchased $385K\"
But 6 years later, the property is worth $593,000. Do you update the ledger? How often? What’s the “right” way to handle this in Beancount?
Option 1: Never Update (Conservative Approach)
Some people argue you should never update property values in Beancount because:
- Real estate is illiquid (you can’t instantly sell it)
- Estimates like Zillow/Redfin have ~7% error rates
- You don’t “realize” the gain until you sell
- Beancount is for transactions, not mark-to-market valuations
Ledger approach:
; Never update the home value
2020-03-15 * \"Closing\" \"Home purchase\"
Assets:RealEstate:Home 385,000 USD
Liabilities:Mortgage -308,000 USD
Assets:Checking -77,000 USD
; 6 years later, still shows $385K
2026-03-31 balance Assets:RealEstate:Home 385,000 USD
Result:
- Net worth calculation understates reality by $208,000
- Equity position is invisible (you have $285K in equity: $593K - $308K)
This feels wrong to me. My net worth statement should reflect economic reality, not just historical cost.
Option 2: Annual Revaluation (My Current Approach)
I update my home value once per year based on online estimates, and I record it as an unrealized gain:
; Original purchase
2020-03-15 * \"Closing\" \"Home purchase\"
Assets:RealEstate:Home 385,000 USD
Liabilities:Mortgage -308,000 USD
Assets:Checking -77,000 USD
; Year-end 2020 revaluation
2020-12-31 * \"Revaluation\" \"Home market value adjustment (Zillow)\"
Assets:RealEstate:Home 28,000 USD
Income:Unrealized:RealEstate:Appreciation -28,000 USD
zillow_estimate: \"$413,000\"
original_cost: \"$385,000\"
appreciation: \"7.3% (9 months)\"
note: \"Annual revaluation based on Zillow Zestimate\"
; Year-end 2021 revaluation (huge appreciation year)
2021-12-31 * \"Revaluation\" \"Home market value adjustment (Zillow)\"
Assets:RealEstate:Home 74,000 USD
Income:Unrealized:RealEstate:Appreciation -74,000 USD
zillow_estimate: \"$487,000\"
yoy_appreciation: \"17.9%\"
note: \"2021 market surge (+$74K)\"
; Year-end 2025 revaluation (current)
2025-12-31 * \"Revaluation\" \"Home market value adjustment (Zillow)\"
Assets:RealEstate:Home 20,000 USD
Income:Unrealized:RealEstate:Appreciation -20,000 USD
zillow_estimate: \"$593,000\"
cumulative_appreciation: \"$208,000 (54%)\"
note: \"Market moderating, but still appreciating\"
Now my ledger shows:
- Home value: $593,000 (current market estimate)
- Mortgage: -$285,000 (after 6 years of payments)
- Home equity: $308,000
This feels more accurate. But it raises new questions:
- Which source do I trust? Zillow? Redfin? Tax assessment? They all give different numbers.
- How do I handle volatility? If Zillow swings ±$20K month-to-month, do I update every time?
- Is this “cheating” my net worth? It’s unrealized—I can’t access this money without selling.
Option 3: Use Tax Assessment (Most Conservative)
Property tax assessments are typically conservative and lag the market, but they’re official valuations.
; Use county property tax assessment
2025-12-31 * \"Revaluation\" \"Home value (property tax assessment)\"
Assets:RealEstate:Home 145,000 USD
Income:Unrealized:RealEstate:Appreciation -145,000 USD
tax_assessment: \"$530,000 (2025)\"
zillow_estimate: \"$593,000\"
note: \"Using conservative tax assessment, not Zillow\"
My county’s assessment: $530,000 (vs Zillow’s $593,000)
This is more conservative, but it’s still $145,000 above purchase price. It also avoids the “Zillow might be wrong” problem.
How Do Zillow/Redfin Estimates Compare?
I ran the numbers for my property across three sources:
| Source | Estimate | Variance from Zillow |
|---|---|---|
| Zillow | $593,000 | — |
| Redfin | $587,000 | -$6,000 (-1.0%) |
| Tax Assessment | $530,000 | -$63,000 (-10.6%) |
Zillow and Redfin are very close (within 1%), which makes sense—both have median error rates around 7% for off-market homes.
The tax assessment is 10.6% lower, which is typical (assessments lag the market by 1-2 years).
My Current Tracking System
Here’s how I’m handling this in Beancount:
1. Annual revaluation (December 31 each year)
2025-12-31 * \"Revaluation\" \"Annual home value adjustment\"
Assets:RealEstate:Home 20,000 USD
Income:Unrealized:RealEstate:Appreciation -20,000 USD
zillow_estimate: \"$593,000\"
redfin_estimate: \"$587,000\"
tax_assessment: \"$530,000\"
average: \"$570,000\"
method: \"Conservative (use Zillow)\"
note: \"Annual revaluation - Zillow/Redfin average close, using Zillow\"
2. Track cumulative appreciation separately
2025-12-31 note Assets:RealEstate:Home \"\\
=== HOME VALUE SUMMARY (Dec 31, 2025) ===
Purchase price: $385,000 (March 2020)
Current value: $593,000 (Zillow)
Appreciation: $208,000 (54%)
Annual appreciation breakdown:
2020: +$28,000 (7.3% - 9 months)
2021: +$74,000 (17.9%)
2022: +$48,000 (9.9%)
2023: +$22,000 (4.1%)
2024: +$16,000 (2.8%)
2025: +$20,000 (3.4%)
Mortgage balance: $285,000
Home equity: $308,000 (52% equity position)
Comparable sales (Zillow):
- 123 Elm St (similar, sold Jan 2026): $605,000
- 456 Oak Ave (similar, sold Dec 2025): $580,000
- 789 Maple Dr (similar, sold Nov 2025): $595,000
Average: $593,333 ✓ (validates Zillow estimate)
\"
3. Query for home equity over time
I can now query my home equity position:
SELECT
YEAR(date) as year,
SUM(CASE WHEN account = 'Assets:RealEstate:Home' THEN position ELSE 0 END) as home_value,
SUM(CASE WHEN account = 'Liabilities:Mortgage' THEN position ELSE 0 END) as mortgage_balance,
SUM(CASE WHEN account = 'Assets:RealEstate:Home' THEN position ELSE 0 END) +
SUM(CASE WHEN account = 'Liabilities:Mortgage' THEN position ELSE 0 END) as equity
FROM CLOSE
WHERE account IN ('Assets:RealEstate:Home', 'Liabilities:Mortgage')
GROUP BY YEAR(date)
ORDER BY year
Results:
Year Home Value Mortgage Equity
2020 $385,000 -$308,000 $77,000
2021 $487,000 -$302,000 $185,000
2022 $535,000 -$296,000 $239,000
2023 $557,000 -$291,000 $266,000
2024 $573,000 -$288,000 $285,000
2025 $593,000 -$285,000 $308,000
Total equity gain: $231,000 (6 years)
From appreciation: $208,000 (90%)
From principal paydown: $23,000 (10%)
This shows that 90% of my home equity growth came from appreciation, not paying down the mortgage. That’s the power of the 2020-2025 housing boom.
The Philosophical Question: Is This “Real” Net Worth?
Here’s my internal debate:
Against updating home values:
- It’s illiquid (can’t sell instantly)
- 6% realtor fees would eat ~$36K if I sold
- Closing costs another ~$3K
- “True” net proceeds would be ~$269K, not $308K
- It’s unrealized—phantom wealth until you sell
For updating home values:
- It’s a real asset with market value
- If I calculated net worth for a bank loan, they’d use current value
- Stocks are also “unrealized,” but I mark them to market daily
- Ignoring $208K of appreciation is dishonest to myself
My conclusion: I update the value annually, but I tag it as unrealized so I remember it’s not liquid.
Questions for the Community
- How do you track home values in Beancount? Do you update them? How often?
- Which source do you trust? Zillow, Redfin, tax assessment, or manual comps?
- Do you count unrealized home equity in your FIRE number? Or only liquid assets?
- Anyone using automated home value tracking? (e.g., pulling Zillow API data monthly)
I know some of you have rental properties and track multiple real estate assets. How do you handle revaluation when the market moves 45% in 5 years?
The 2020-2025 housing boom was unprecedented. My ledger needs to reflect that reality, but I want to do it in a way that’s honest, conservative, and doesn’t inflate my net worth with phantom gains.
How are you handling this in your Beancount ledger?