02/09/2022
Here's Your February 8 2022 Real Estate report report.
Annual rent price growth has continued to double and even triple in the last several months, a recent report from CoreLogic has found. This rapid acceleration is concerning for both consumers and local governments, and has added to the upward pressure on inflation.
Homeownership is seen as the largest source of wealth among families, with the median value of a primary residence worth nearly 10 times the median value of financial assets held by families. A recent Economists' Outlook blog posted by Scholastica Cororaton, Research Economist for the National Association of Realtors (NAR), on NAR.com, found that at the national level, homeowners who purchased a single-family existing home 10 years ago have gained an average of $225,000 in home equity if the home was sold at the median sales price of $363,100 in Q3 of 2021. These gains in home equity come from paying down the mortgage and from appreciation in home prices. According to compounded annual growth rates, some 86% of the gains come from price appreciation of $193,600, and principal payments totaling $31,300. Over a 10-year period, home prices have increased 7.9% annually, a stronger appreciation compared to the 4.2% annual price pace in the past 30 years. The past five years have seen increasingly rapid price appreciation. Nationally, median single-family existing-home sales rose 8.5% annually from 2016 Q3 through 2021 Q3. A homeowner who purchased a typical home five years ago would have accumulated $144,400 in home equity, of which $121,800 resulted from price appreciation, or 84% of total home equity gains. Over a 30-year period, a homeowner who purchased a typical single-family home would likely have accumulated $354,400 in home equity, with $258,700 in housing wealth home price gains accounting for approximately three-quarters of the gain, with the typical existing-home sales price increasing by 4.2% annually. Source: DSNews
Thanks again everyone and have a great day.
Eric Gausepohl
Summit Lending
Sales/Product Development
28581 Old Town Front Street, Ste 108 Temecula, CA 92590
714 206-2391 Main
714 333-9383 Fax
Website: www.summitlender.com
NMLS: 371291
