How Much Equity Do I Have?

How Much Equity Do Local Homeowners Have?

Homeowner equity for median homes in 154 metro areas varies considerably depending on location, according to a recent NAR report. An analysis of these median homes in 154 metro areas over a five-year period (2004 – 2009) reveals:

87 metro areas experienced price appreciation.

In 13 metro areas, a median buyer with a 30-year fixed-rate mortgage accumulated an average of more than $50,000 in equity.

67 metro areas experienced price depreciation.

In 11 metro areas — all located in California, Nevada and Florida — a median buyer with a 30-year fixed-rate mortgage was underwater more than $50,000.

Over the last 10 years, the price and equity picture is much brighter. Median buyers in the top 29 metro areas could have accumulated at least $100,000 or more in equity. Interestingly, four of the six California cities that have had the biggest equity losses over the last five years are among the biggest gainers over a 10-year horizon. Only 12 of 154 metro areas experienced price depreciation over this 10-year period, and only seven areas — concentrated in Ohio and Michigan — saw a decline substantial enough to leave a median buyer underwater.

Over an even longer term, we see positive equity build-up in all areas. For example, in 75 of the 154 areas, a buyer who bought at the median price 20 years ago would have over $100,000 in equity in their home. In an additional 67 areas, the buyer would have more than $50,000 in equity. Take a look at overall performance in your metro area by visiting NAR's Metro-Area Housing Equity Reports page.


All "Betts" on Brian! The Only Realtor you want!