The average home seller nets about a 23 percent gain in equity from the time they purchase their property – or about $40,000, according to the National Association of REALTORS®. But a closer look at the data reveals that sellers who purchased their home during certain volatile years tend to fare worse than others.
Home owners who purchased their home eight to 10 years ago—from 2005 to 2007, during the height of the real estate bubble—have earned just $3,000 or 1 percent in equity during that time, says Jessica Lautz, NAR’s managing director of survey research and communication. Those home owners may show the most reluctance to sell their homes, and that may be adding to the inventory shortage in many cities, Lautz says.
Take a closer look at NAR’s latest profile of buyers and sellers report at the breakdown below to see who fares the best in the equity picture:
I can’t tell you how many clients we have helped in the past few years that bought during the crash and are just getting back to a break even point to sell. On the other hand I have had clients that bought 2-3 years ago and have sold, cashed out and purchased again. If you are thinking about jumping into the market and purchasing a home, don’t hesitate!