Despite it being difficult to predict home equity appreciation, you and/or your clients are doing more than okay if you and/or your clients were lucky enough (or clever enough) to purchase a home in 2012.
A new study by Redfin indicates that people who bought homes in 2012 at bargain, post-Great Recession prices are now seeing an average increase of +261% in appreciated prices. That +261% increase totals some $203B in home equity.
Obviously, some markets, especially in California’s expensive market, have seen larger gains when measured in dollar amounts and other markets, such as Tacoma WA’s more modest market, have seen larger gains when measured in percentage increases.
Take a look at both these dollar and percentage increases due to home equity appreciation since 2012.
Top 10 Markets for Home Equity Percentage Gains Since 2012:
Market Median % Increase Median Dollar Increase
Tacoma 1,453% $218.000
Virginia Beach 1,333% $80,000
Greeley CO 1,067% $192,000
Spartanburg SC 790% $79,000
Salem OR 781% $164,000
Modesto CA 769% $200,000
Colorado Springs 677% $149,000
Stockton CA 643% $225,000
Bremerton WA 638% $204,000
Olympia WA 631% $164,000
Top 10 Markets for Home Equity Dollar Gains Since 2012:
Market Median Dollar Increase Median % Increase
San Francisco $741,000 329%
San Jose $699,000 360%
San Rafael CA $604,000 247%
Oakland $461,000 369%
Seattle $364,000 461%
Santa Rosa CA $350,000 318%
Salinas CA $322,000 322%
Los Angeles $318,000 292%
Anaheim $311,000 219%
Santa Maria CA $297,000 230%
Thanks to Redfin for source data.
Also read: Now A Seller’s Market?, Home Prices in 20 US Cities Show Most Lethargic Rise Since 2012, Does “Entry-Level” Pricing Mean What It Used To?
