idk much about this topic
median home appreciation rates seem to be similar to mortgage rates in a lot of places. does that mean the average home buyer basically breaks even over the duration of a mortgage?
idk much about this topic
median home appreciation rates seem to be similar to mortgage rates in a lot of places. does that mean the average home buyer basically breaks even over the duration of a mortgage?
In Toronto, where housing is out of control, the median house value has moved from about $300K to $950K over the last 10 years.
So, people who bought in 2011 at $300K with, say a $250K mortgage, have paid off probably almost $100K of the amount ($1700/month over 10 years with about half going to interest payments). <-- note their monthly payment has not changed in 10 years.
So, that person now owes $150K on a $950K house, meaning that they have gained a magical $650K in capital if they decide to sell.
Anyway, I don't know if this answers your question, it's just an accurate example of a mortgage from my city.