Real Estate By The Numbers: April 2022

There is more wealth accumulation in the country than ever before! Americans’ total net worth rose by $31 trillion between the onset of the pandemic and the middle of 2021.  Current homeowners nationwide have accumulated $5 trillion in equity during the pandemic, or around $67,000 for a typical owner.

While we have enjoyed low mortgage rates recently, inflation has caused the Federal Reserve to raise interest rates.  If you are shopping for a $300K loan, a rate increase of just 0.9% represents an increase of about $150 per month for your payments.  In addition, national home prices have increased by 25% since March 2020.  It’s no surprise then that first time buyers now account for less than 30% of home sales.  The good news?  In each of the last 5 decades, home price appreciation has come close to or outpaced inflation, making homeownership a good inflation hedge.

Published April 2022