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June 2017   Volume 43, Number 6      
 

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Rising Home Prices Drive Up Homeowner Debt

Americans are increasingly paying more for homes and the results are showing up in the form of debt on families’ balance sheets. In 2017, the mortgage debt accrued by the average homeowner rose to $196,014, an increase of 2.5 percent over last year and 6.4 percent higher than nine years ago, according to a new study by Experian.

The median existing-home price in February was $228,400, up 7.7 percent from February 2016 ($212,100). The price increase was the fastest since January 2016 (8.1 percent) and marks the fifth year of consecutive year-over-year gains. The annualized rate of home sales climbed to 5.48 million in February, 5.4 percent higher than a year ago. More homes also sold at higher prices, fueling an increase in the average mortgage debt.

It’s also not surprising that mortgage debt is greatest where home prices are the highest. Residents of Washington, D.C., had the highest average mortgage debt at $385,000, followed by California ($336,000) and Hawaii ($331,000), mirroring the list of the top most expensive states to buy a home.

Although mortgage debt is increasing, homeowners are becoming better at managing mortgage debt.

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In this issue:

Virtual Reality Shakes Up Real Estate

All-cash Chinese Buyers Disappearing From U.S. Real Estate Markets

Consumer Confidence Falls after Record High

Immigrant Households Impact Success of Real Estate Market

Multifamily Construction Loans Are Getting Harder for Developers to Find

Survey NAR Survey Finds Increase in Consumer Confidence in the Midwest and Rural Areas

Purchases of Vacation Homes Declined for Second Straight Year in 2016

Rising Home Prices Drive Up Homeowner Debt

The 10 States Investing the Most in Commercial Real Estate

How Sellers Can Avoid the Downsides of Hot Real Estate Markets


 


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