The value of homes in the United States are reaching record highs and this is allowing homeowners to become much more wealthy. The annual price of homes has increased by an average of 15% in 2021 which is much greater than the 6% increase in 2020. Sellers have also seen an average of 94,000 dollars in profit which is up 45% from the level in 2020. 42% of homeowners are also considered equity rich now as the value of their home is now more than half their mortgage.
- The annual price of a home has gained in average by 15% which was much bigger than a 6% increase in 2020.
- At the end of 2021 almost 50% of homeowners were considered equity rich as their mortgages were half the value of their home.
- People selling their homes are raking up 94,000 in profit which is up 45% from 2020 and 71% from pre-pandemic.
“While buyers face limited affordability, waning supply, and intensifying competition, sellers are reaping the benefits and raking in an average $94,000 in profit, up 45% from 2020, and 71% higher than returns on pre-pandemic sales.”