Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.
Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.
Some of the findings revealed in their report:
- The average American family has a net worth of $81,200
- Of that net worth, 61.4% ($49,856) of it is in home equity
- A homeowner’s net worth is over 36 times greater than that of a renter
- The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400
There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.
source: Keeping Current Matters
Southeast Region Metro Denver Real Estate Market Report ~ September 2014
The SE Metro Denver Region has the most inventory of all five regions and the highest average price. The “average days on market” to sell is the longest but only by a difference of 10 days! (Denver’s days on market is 30 while SE Metro is 40!) Out of the 18 zip codes in this region only six are not in the “seller’s market/extreme seller’s market” category. Four of those six areas are just slightly lagging behind in the “Moderate to High Appreciation” category. The two remaining areas are Castle Rock and Sedalia where the market is a little slower to sell (59 days) due to the large amount of inventory. I suspect the number of new homes being built has an effect on this area.
Neighborhoods in the area include (but are not limited to):
Want to compare the statistics of all 5 Denver Metro Regions?
Questions about your neighborhood? Need more specific data on your home for either purchase or to sell? Feel free to call for more in depth reporting. Kristal Kraft 303-589-2022 I welcome your call.
Based on information from Metrolist, Inc. NOTE: this representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist does not guarantee nor is in any way responsible for its accuracy. Data maintained by Metrolist may not reflect all real estate activity in the market content.
I did a search for the number of foreclosures in our MLS. Out of a total 13,457 homes for sale only 214 of those homes were what the consumer refers to as “foreclosures” or “bank owned” the correct term. That’s 2% of the entire market!
If you are looking for a home, why would you want to exclude 98% of possible homes?
So what happened? It’s easy, the real estate market turned around. Home owners are no longer under water as real estate values have increased in the Denver Metro market over the past few years. When values increase, home owners have the ability sell their homes if they need to move so they do.
What should home buyers do now?
Buyers now need to reframe their thinking and look for real estate deals in a different way. Yes, there are deals available in the real estate market. In order to find them you need to align yourself with a professional who can help you find the right one for you.