Earlier this month, the National Association of Realtors (NAR) released a special study titled Single-Family Home Price Gains by Years of Tenure. The study estimates median home price appreciation over the last 30 years based on the length of homeownership.
Below are three graphs depicting the most important data revealed in the study.
How much have home prices increased?
One of the first measures of the financial benefits of homeownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home.
What was the percentage of appreciation?
Another way to look at this is by the percentage increase in value over time, called appreciation:
Was this appreciation consistent throughout the country?
Today, when we think of markets that have done well over the last decade, we have a tendency to think about San Francisco, San Diego, Seattle, and other West Coast cities. Though it is true the West Region showed the highest price growth over the last three decades, we can see how every region of the country did quite well in ten-year increments:
This data validates the claim that homeownership is great for building wealth. The importance of this information was highlighted in the study’s first sentence:
“Homeownership is an important source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder.”
Bottom Line
Homeownership has many financial and non-financial benefits. The accumulation of “housing wealth” through increased equity is a major one. If you’re thinking of buying a home for the first time or moving up to your dream home, the sooner you make the move, the sooner your net worth will begin to grow.
Search Denver Area Homes:
Start the process today by searching the MLS for your next home. Mortgage interest rates are still historically low and the metro Denver market has more housing inventory that it did a few years ago. Explore the homes available today to get a feel for price points, types of homes, and locations so you have a better feel when it comes time to take a more serious look. My Denver real estate blog is full of useful information for homebuyers considering buying a home. Please call me, or send me an email / text, to discuss your thoughts about your next home.
Please contact me before you look at new construction, remember the builder’s real estate agent represents the builder’s interest, not your’s. There is no cost for you to have a buyer’s agent represent you in a transaction with a sophisticated seller. In fact, I may be able to help you save money and negotiate for extras which the builder may not let you know about.
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Time To Sell Your Home?
When it is time to sell your home in the Denver area, I encourage you to work with a real estate agent who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. The market is more balanced now and your asking price is an important component of your selling strategy. And if you are selling your home to then buy a new home, you’re in luck, we are now in a “goldilocks” market ideal for that type of transaction. Contact me today to learn how your home stacks up against the competition and how we can position your property to sell quickly and for a fair price.
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