In the Reno-Sparks market the median home price went from $280,000 to $310,000 between June 2015 and June 2016 (same time period used in the graphic below). That’s a 9.67% increase. According to Corelogic Nevada homeowners on average gained $17,000 in equity for that same time period. Great news for Nevada’s homeowners. These gains in equity could signal that it’s time to “right-size” by moving up or downsizing. The Shocket Team can help. Reno-SparksRealEstate.com
Recently there has been a lot of talk about home prices and if they are accelerating too quickly. As we mentioned before, in some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers out looking for a home, which has caused prices to rise.
The great news about rising prices, however, is that according to CoreLogic’s US Economic Outlook, the average American household gained over $11,000 in equity over the course of the last year, largely due to home value increases.
The map below was created using the same report from CoreLogic and shows the average equity gain per mortgaged home from June 2015 to June 2016 (the latest data available).
For those who are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new-found equity in their homes and themselves, not in depreciating assets.
The added equity is helping families put their children through college, invest in starting small businesses, allowing them to pay off their mortgage sooner or move up to the home that will better suit their needs now.