We are still showing a very strong year over year price increase of +14.3% increase with pricing reaching $623,000. When. you think about gaining nearly 15% on the appreciation of your home over the last 12 months many of you earned more in equity than you did from your job. If you purchased a home for $545,000 (the average price one year ago) and gained 15% appreciation you would have earned $81,750 or $6,812.50 a month. This also represents a +3.8% month over month.
With the Federal Reserv announcing on December 15th, they plane to double the tapering rate and indicated interest rates would increase next year. It’s only a matter of time before we see prices fall as much as 5% to 10%. Remember the general rule is when interest rates increase home values decrease.