Homeowners Have Gained Almost $150K in Wealth Over the Past 5 Years

Home Equity Gains and Market Trends

If you own a home, congratulations—your property has likely gained significant value over the past five years. According to the latest report from the National Association of Realtors®, the typical homeowner has accumulated $147,000 in housing wealth since 2019. This equates to an average profit of $29,400 per year, nearly half of the typical U.S. salary.

The article highlights the sharp rise in home prices in recent years, with notable regional differences. In the third quarter of 2024, home prices saw an impressive increase across the country. The Northeast led the pack with a 7.8% year-over-year price increase, followed by the Midwest at 4.3%, the West at 1.8%, and the South at 0.8%.

A key takeaway is that home price gains weren't confined to specific areas. Around 90% of metro areas experienced home price increases, reflecting a strong and widespread housing market. Despite a slight decrease in the number of markets with double-digit price appreciation (down from 13% to 7%), the overall trend remains positive, with home prices continuing to climb in most markets.

The national median price for a single-family existing home grew by 3.1% year-over-year, reaching $418,700. The South saw the most home sales, accounting for 45.1% of all single-family home transactions in the U.S. between July and September.

Main Points:

• Home Equity Gains: Homeowners gained $147,000 in housing wealth since 2019, averaging $29,400 per year.
• Regional Trends: The Northeast saw the highest price increase (7.8%), followed by the Midwest (4.3%), West (1.8%), and South (0.8%).
• Broad Market Gains: 90% of metros saw home price increases, with 87% of metro areas reporting rising home prices.
• National Median Price: The national median price for single-family homes increased by 3.1%, reaching $418,700.
• Selling Activity: The South led in home sales, comprising 45.1% of single-family sales.

SEP for Twin Cities Real Estate:

For those looking to buy or sell in the Twin Cities, now is a prime time to consider your options, especially with the market continuing to see equity gains across the country. As home prices in the Northeast and Midwest see significant upticks, it’s important to leverage this current market trend in the Twin Cities.

Whether you're buying your first home or looking to sell and capitalize on your home equity, having a trusted local expert to navigate the current market is crucial. The Twin Cities’ housing market, much like the rest of the nation, continues to see solid price growth and strong buyer interest.

If you're considering selling, now could be an excellent time to take advantage of these gains and get top dollar for your home. For buyers, this is a prime opportunity to invest in a growing market, with a steady increase in home values and a wide variety of properties available.

Let us help you make the most of these market trends and guide you through the buying or selling process with confidence.

Read the full article from Realtor Magazine here: https://www.realtor.com/news/trends/homeowner-equity-growth-nar-report/