Chart Reveals Who Gained the Most Equity in Their Home
The average home seller nets about a 23 percent gain in equity from the time they purchase their property – or about $40,000, according to the National Association of REALTORS®. (NAR)
A closer look at the data reveals that sellers who purchased their home during certain volatile years tend to fare worse than others.
Home owners who purchased their home eight to 10 years ago—from 2005 to 2007, during the height of the real estate bubble—have earned just $3,000 or 1 percent in equity during that time, says Jessica Lautz, NAR’s managing director of survey research and communication. Those home owners may show the most reluctance to sell their homes, and that may be adding to the inventory shortage in many cities, Lautz says.
Chart Reveals Who Gained the Most Equity
Take a closer look at NAR’s latest profile of buyers and sellers report at the breakdown below to see who fares the best in the equity picture:
That group of homeowners may be reluctant to put houses on the market today, even though they are right at the average tenure of sellers who make a house trade, and that may be adding to existing-home inventory shortages in many cities, Lautz said at the NAR’s annual convention here.
Despite the equity gains for most homeowners, it is taking more and more income these days to purchase a home. The NAR’s profile of home buyer and sellers for 2015 shows that the gross household income of all purchasers was $86,100, a figure that has risen every year since 2012 when it was $78,600. This is inspite of the lowest increases in COLA during that time.
Source: “If You Bought Your Home During These Years You’re Really Hurting,” realtor.com® (Nov. 17, 2015)
Scottsdale Real Estate News | Wednesday, November 25, 2015