West Valley Real Estate

Many Americans have taken a hit to their home equity over the past couple of years, and some may wonder if it’s really the smartest financial decision to own a home.  In comparison with renters, home owners have much greater household wealth, says National Association of Realtors’ April commentary on the Fed’s Survey of Consumer Finances.  Owners’ wealth exceeds that of renters by a factor of 50-to-1.  The main wealth difference between the two is home equity.  But even for households who’ve owned their home only since 2003, home equity gains are the rule rather than the exception – and in some cases, equity gains have been significant.  In all 150 markets tracked by NAR, including hard-hit markets, households who’ve owned their home for 10, 15, and 20 years have uniformly enjoyed strong equity gains despite the recent downturn.  The data clearly show that homeownership remains the biggest store of wealth for the typical household, even when markets are buffeted by some admittedly very rocky years. (Realtor Magazine, Robert Freedman)