Much can happen in 10 years – including record equity growth! A recent article from Bankrate revealed the 5 metro areas with the highest levels of home price appreciation in the last decade. No surprise here that San Jose and San Francisco ranked #1 and #2 based on data compiled from the National Association of Realtors (NAR).
While this vast amount of price appreciation is great news for existing homeowners… what does it mean for buyers? Bankrate asserts that “[The] price gains in those places over the past decade illustrate that perhaps it makes sense to stretch the budget to buy a house in an expensive area.”
Given the recent changes in the market, you may be thinking “Those days are gone, I’ll never build that much wealth through real estate.” However, data from both Black Knight and CoreLogic supports the strategy that equity gains have retained much of their growth. While home prices have fallen month-over-month nationally this summer**, home prices are still 13.5% higher year-over-year from August 2021 t0 August 2022, as reported by CoreLogic. Average home prices reside at 2% lower than their June peak according to Black Knight but are still 40% higher than in 2019.
In short, we encourage you to weigh the impact of short-term cooling trends vs. long-term gains. Those seeking to build wealth through real estate or wondering how to make the most of the ROI they have gained have a LOT of options! Our team at Homes of Silicon Valley is happy to help you review the data, talk through your goals and create a plan that leads to the lifestyle you want to lead. Let’s get started!
All my best,
Mark
**Note that here in Santa Clara County, home prices have risen 3% month-over-month, reinforcing that real estate data is still very hyper-local. Read more here.
Mark Barber
408-290-0072 | mark@homesofsv.com
DRE 01220031