HOME APPRECIATION

(FED Board of Philadelphia) We all have seen the changes in home appreciation over the last ten to twenty years, and here is an average of the changes per different time periods
1977- 80 1980- 83 1983-87 1987-91 1977-91
Average 6.1% -2.4 3.3 2.3 2


HUD: (1999) The agency reports that 66.3 percent of all households owned their own home in 1998, or 69.1 million families -- 7.3 million more than in January 1993. About 41 percent of the new homeowners since 1994 are minorities, although minorities make up just 24 percent of the U.S. population.

The study reviewed areas across the United States and showed wide volatility in different areas in different time frames. However, with lower inflation and with the key component of wealth now focusing on the stock market, rates of appreciation should stay relatively low in almost all areas for some time to come. You would have to have very high inflation and very high interest rates to reach the returns of the early 80's.

Real Estate: It's Boom Time in the Housing Market, But for How Long? (2002)

The residential real estate market in many U.S. cities shows no signs of slowing down, as eager home buyers continue to drive prices ever higher. Is this too good to be true? Are home prices a bubble that is soon to burst? Real estate experts at Wharton and in the private sector offer their predictions.

Real Estate Bubble (2003)- Home prices rose at a significantly slower pace in the third quarter than in the previous period, a sign that the housing market may finally be facing a correction. In the U.S. existing home sales are up 6.1% since last October, while the median home price rose 7.2% to $161,800. Personal income, meanwhile, is up 3.3%.

San Francisco- • Existing home sales: + 2.3% ,• Median home price: $530,900

• Change in prices: + 12.0%

• 30-year mortgage rate: 6.38%

• Median family income: $86,100

• Change in income: + 7.5%

• Mortgage delinquencies: 3.1%

• Unemployment rate: + 5.4%

Changes are year over year.

Las vegas- • Existing home sales: + 20.0%

• Median home price: $163,200

• Change in prices: + 7.5%

• 30-year mortgage rate: 6.22%

• Median family income: $54,300

• Change in income: + 4.2%

• Mortgage delinquencies: 5.0%

• Unemployment rate: 5.1%

San Diego- • Existing home sales: + 2.3%

• Median home price: $379,200

• Change in prices: + 21.5%

• 30-year mortgage rate: 6.34%

• Median family income: $60,100

• Change in family income: + 5.6%

• Mortgage delinquencies: 3.1%

• Unemployment rate: 4.1%

 Portland- • Existing home sales: - 2.2%

• Median home price: $182,700

• Change in prices: + 4.5%

• 30-year mortgage rate: 6.25%

• Median family income: $57,200

• Change in income: + 2.3%

• Mortgage delinquencies: 3.0%

• Unemployment rate: 6.9%

Seattle- • Existing home sales: - 1.9%

• Median home price: $261,500

• Change in prices: + 11.7%

• 30-year mortgage rate: 6.34%

• Median family income: $77,900

• Change in income: + 7.9%

• Mortgage delinquencies: 3.3%

• Unemployment rate: + 6.8%

Changes are year over year.

Denver- • Existing home sales: - 3.9%

• Median home price: $233,600

• Change in prices: + 4.3%

• 30-year mortgage rate: 6.17%

• Median family income: $69,900

• Change in income: + 8.5%

• Mortgage delinquencies: 3.1%

• Unemployment rate: 5.2%

Houston- • Existing home sales: + 0.1%

• Median home price: $134,300

• Change in prices: + 9.9%

• 30-year mortgage rate: 6.20%

• Median family income: $59,600

• Change in income: + 1.9%

• Mortgage delinquencies: 6.2%

• Unemployment rate: 5.9%

Fort Meyers- • Existing home sales: + 3.0%

• Median home price: $142,100

• Change in prices: + 6.2%

• 30-year mortgage rate: 6.17%

• Median family income: $52,100

• Change in income: + 6.3%

• Mortgage delinquencies: 5.1%

• Unemployment rate: 4.2%

Atlanta- • Existing home sales: + 7.3%

• Median home price: $148,500

• Change in home prices: + 6.1%

• 30-year mortgage rate: 6.11%

• Median family income: $71,200

• Change in family income: + 7.1%

• Mortgage delinquencies: 6.0%

• Unemployment rate: 5.1%

Washington DC- • Existing home sales: + 0.8%

• Median home price: $259,300

• Change in prices: + 17.0%

• 30-year mortgage rate: 6.20%

• Median family income: $91,500

• Change in income: + 6.9%

• Mortgage delinquencies: 5.0%

• Unemployment rate: 3.5%

New York- • Existing home sales: - 0.1%

• Median home price: $328,000

• Change in prices: + 19.4%

• 30-year mortgage rate: 6.22%

• Median family income: $62,800

• Change in income: + 6.3%

• Mortgage delinquencies: 4.6%

• Unemployment rate: 6.6%

Boston- • Existing home sales: - 7.2%

• Median home price: $415,800

• Change in home price: + 13.2%

• 30-year mortgage rate: 6.27%

• Median family income: $74,200

• Change in family income: + 6.0%

• Mortgage delinquencies: 3.3%

• Unemployment rate: 4.9%

Monmouth County, NJ- • Existing home sales: + 1.5%

• Median home price: $273,500

• Change in prices: + 26.0%

• 30-year mortgage rate: 6.13%

• Median family income: $69,900

• Change in income: + 6.6%

• Mortgage delinquencies: 4.7%

• Unemployment rate: 4.7%

Indianapolis- • Existing home sales: - 1.3%

• Median home price: $120,400

• Change in prices: + 0.2%

• 30-year mortgage rate: 6.23%

• Median family income: $64,100

• Change in income: + 5.6%

• Mortgage delinquencies: 5.8%

• Unemployment rate: 4.5%

Chicago- • Existing home sales: + 2.4%

• Median home price: $230,200

• Change in prices: + 8.7%

• 30-year mortgage rate: 6.25%

• Median family income: $75,400

• Change in income: + 7.0%

• Mortgage delinquencies: 4.9%

• Unemployment rate: 6.3%

Minneapolis- • Existing home sales: + 0.7%

• Median home price: $189,400

• Change in prices: + 11.1%

• 30-year mortgage rate: 6.22%

• Median family income: $76,700

• Change in income: + 2.7%

• Mortgage delinquencies: 2.9%

• Unemployment rate: 4.1%

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