Remember all that equity lost during the downturn? It’s back, or much of it, anyway.
In 2015, single-family homes and condos sold for more above their original purchase price than at any time since prices peaked during the real estate boom.
Homes sold for an average of 13 percent above their original purchase prices, the highest average percentage in home price gains realized by sellers since 2007, when it was 30 percent, according to RealtyTrac.
“Home price appreciation has settled into a nice groove over the past few months, and ought to remain there going forward. This is still more proof that the for-sale market, while certainly not yet fully healed, is continuing to return to normal,” said Zillow Chief Economist Dr. Stan Humphries.
But experts warn that a few bumps remain on the road to full recovery.
“While improving, inventory is low and the housing market is still very much out of balance, particularly on the rental side, where rapid rent increases and tepid wage gains are contributing to a deepening rental affordability crisis. This will make it more difficult for current renters to save up and make the transition into homeownership, particularly for younger would-be buyers the market so sorely lacks and needs,” said Humphries.