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Owners Average $225K in Housing Wealth Over Decade

January 13, 2022

Owners Average $225K in Housing Wealth Over Decade

 

Homeownership continues to prove it can pay off over the long term. It is the largest source of wealth among most families, and it’s been paying back more lately.

Equity gains are increasing, making homeownership even more profitable: A homeowner who purchased a single-family existing home 10 years ago would have gained $225,000 in home equity if they sold at the median sales price of $363,100 in the third quarter of 2021, Gay Cororaton, a National Association of REALTOR® research economist, says on the association’s Economists’ Outlook blog.

Homeowners typically stay in their homes for 10 years. For reference, about a decade ago, the median sales price of a home was $169,000, according to NAR data. The gains in home equity come from paying down the mortgage and from appreciation in home prices, Cororaton says.

“The past five years have seen increasingly rapid price appreciation,” Cororaton says.

A homeowner who purchased a typical home five years ago has accumulated an average of $144,400 in home equity, according to NAR data.

 
Source: 
Single-Family Homeowners Typically Accumulated $225,000 in Housing Wealth Over 10 Years,” National Association of REALTORS® Economists’ Outlook blog (Jan. 7, 2022)

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FRANK HORNSTEIN GROUP

IRON VALLEY REAL ESTATE

Frank A. Hornstein  302-604-4746 cell/text - frankhornstein1@gmail.com

Office 302-541-8787

19930 Lighthouse Plaza Blvd

Rehoboth Beach,  DE 19971

 
 

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