5 Years: $150,000 Richer

Despite the dramatic changes in the real estate market, homeowner wealth has gone up by nearly $150,000 in the last five years. The pandemic initially slowed real estate, but it was followed by a great demand in purchasing, which lead to price increases, scarcer inventory and rising interest rates. However, the National Association of REALTORS® (NAR), reports that home increases have slowed down. The national median home price increased by 3.1 percent year-on-year in the third quarter of 2024, which marks a 5 percent increase seen in the second quarter. Sold prices are still high, but this deceleration of prices may show a more balanced year 2025.

Where were the sold price increases? According to NAR, nearly 90 percent of major U.S. metro areas saw home price increases in the third quarter of 2024. Prior to 2024, mortgage rates had been steadily rising, reaching a peak above 7 percent, which affected buyer affordability and buyer sentiment. Late this year, the 30-year fixed-rate mortgage has since averaged in the mid-6 percent range, improving buyer sentiment and affordability. For example, a 20 percent downpayment home loan, on a typical existing single-family home   decreased by 2.4 percent year-over-year in the third quarter. 

So what to do now? If you’re a buyer, get prepared appropriately, use a good loan, and have the right Realtor find and negotiate the terms. If you’re a seller, selling to move up or down or invest in a second home, this is an ideal time now, before sold prices continue to increase, more buyers come into the market and inventory continues to be historically low.