How Do Appreciation Rates Reflect On Home Mortgages?
Recently, Victor Samaan of Bank of America sent over this appreciation map to show how the rates vary throughout the states. It was amazing to see the overall rates of the state of California, and how it relates to the rest of the country. Here is how it was presented.
The map illustrates the top states for property appreciation rates year over year. Property appreciation is calculated based on repeat sales of the same properties, which can avoid the problem of trying to account for price differences in homes with varying characteristics. Increasing home prices usually indicate rising demand, while decreasing prices reflect falling demand.
All states saw property appreciation versus one year ago, with Washington, Nevada, Utah, Idaho and South Dakota leading as the top five. Washington’s property appreciation rate was the highest at 12.1% in January 2018. The data suggests that home values are growing really fast across the country.
Overall, property appreciation rates were higher in the western half of the United States. The national average property appreciation rate was 5.46%, with 23 states falling below the average.
Click on the graph to enlarge. Photo courtesy of the Bank of America.
If you have any questions about the real estate market, or if you are interested in selling or purchasing residential or commercial property please feel free to contact me.