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Owners who bought 8-10 years ago have little equity

WASHINGTON – Nov. 19, 2015 – The average home seller today has about 23 percent built up in equity since he or she purchased the home –about $40,000, according to the National Association of Realtors® (NAR). But sellers who purchased their home during certain volatile years tend to fare worse than others.
At the bottom of the equity list: Homeowners who purchased their home eight to 10 years ago – from 2005 to 2007, during the height of the real estate bubble – have earned just 1 percent in equity ($3,000) during that time, says Jessica Lautz, NAR’s managing director of survey research and communication. Even if they want to sell, these homeowners may show the greatest reluctance – and that may be adding to the inventory shortage in many cities.
According to NAR’s latest profile of buyers and sellers, the following overview provides a glimpse at the average homeowner’s equity:
Ownership for 1 year or less: 14% equity
2-3 years: 15%
4-5 years: 19%
6-7 years: 14%
8-10 years: 1%
11-15 years: 23%
16-20 years: 63%
21-plus years: 145%
Source: “If You Bought Your Home During These Years You’re Really Hurting,”® (Nov. 17, 2015)
© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688  
Source: Florida Realtors Feed

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