Summary and Analysis
On May 1, Bilbo returns to Elrond and then goes on to his house, which is being sold at auction, because he is presumed dead.
The story ends with Bilbo settled once again in his hobbit-hole, more comfortable than ever before and yet thinking back on his great adventure.
In this final chapter, Bilbo reflects on the adventurous year he has spent in the company of the dwarves. Although he is returning home, Gandalf tells him what Bilbo himself knows, that he is not the hobbit he once was. It is somewhat symbolic of his new self that his house and furnishings are being sold; there has been a sort of death to the old Bilbo Baggins.
You are told that from this time onward, Bilbo is thought to be unusual, even a bit odd; that he likes to write poetry and visit elves. You understand, then, that his adventures have indeed changed him in some permanent ways. He resembles his mother's family, the Tooks.