Appreciation is Still Happening in Homes under $400k
If you are ‘fortunate’ enough to own a home that has a value less than $417,000, then you have better than even odds that your home actually is still increasing in value.
That is because home prices in 56 percent of metropolitan areas, which include 292 cities did increase in the first quarter this year. What’s the caveat?
The increase in home prices is only happening for homes that are not subject to jumbo loans of $417k or more. So if your home when sold does not require jumbo financing, then you might still see your home continue to appreciate.
We hear a great deal about home prices coming down, but this is largely because the total numbers are significantly skewed by homes that cost between $500k and $1.5 million. These are also the homes that have been hit hardest for foreclosure.
To top things up, there are still some markets that are appreciating significantly. So if you are looking to sell this year, all is not lost. It may not be a sellers market, but at least you won’t feel like your price has been completely squashed like a fly under a stack of books.
Some markets are appreciating strongly, such as Austin (up 7.7 percent in the past 12 months), Grand Junction, Colo. (up 9.1 percent), Charlotte (up 6.2 percent), and Provo, Utah (up 6.8 percent).
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