Throughout most of the country, starter homes show the greatest value for homebuyers. But not in the Bay Area where ALL homes are showing significant appreciation.
For examples, homeowners in the San Jose metro area who purchased in the lower third of the market saw a significant 18 percent return in 2017 while the high-end buyers saw a 18.9 precent increase.
Nationwide, starter homes appreciated 8.5 percent last year while those homes in the top tier saw a far more modest 3.6 percent return.
Everyone understands the value of a good education but a recent study by ATTOM Data Solutions reveals the relationship between U.S. Home values, appreciation and quality schools (defined as those with text scores one-third higher than the state average). In this study the average home value win a ZIP code with at least one quality elementary school was 77 percent higher than homes in areas without good schools.
Moreover, homes in good school districts appreciate up to three times more than those in lower quality districts.
According to VeroFORECAST approximately 80 percent of the United States real estate markets will continue to appreciate in the next 12 months.
Moreover, it is estimated that the home price index (HPI) will increase by 2.5 percent over the same time period.
This marks the eighth consecutive quarter there appreciation has been forecast even while the pace of acceleration continues to slow.