The Hardest Working Agent in Arizona

The latest S&P / Case-Shiller® Home Price Index® numbers were published on February 29

The new report covers home sales during the period November 2021 to January 2022

Comparing with the previous month's series we see the following changes:

1. San Diego +2.50%
2. San Francisco +2.35%
3. Tampa +2.33%
4. Seattle +2.02%
5. Dallas +1.89%
6. Miami +1.83%
7. Las Vegas +1.70%
8. Phoenix +1.69%
9. Denver +1.61%
10. Los Angeles +1.59%
11. Atlanta +1.47%
12. Charlotte +1.26%
13. Washington +1.11%
14. Portland +0.91%
15. New York +0.86%
16. Detroit +0.71%
17. Boston +0.66%
18. Chicago +0.64%
19. Minneapolis +0.50%
20. Cleveland +0.33%

Phoenix has dropped 2 places to eighth place but remains above the national average, which was 1.41%. No city declined month to month. Given that the market data does not include any of the Spring selling season, these are particularly strong numbers, particularly for the West and South of the country

Comparing year of year, we see the following changes:

1. Phoenix +32.6%
2. Tampa +30.8%
3. Miami +28.1%
4. Dallas +27.3%
5. San Diego +27.1%
6. Las Vegas +26.2%
7. Seattle +24.7%
8. Charlotte +24.4%
9. Atlanta +22.5%
10. San Francisco +20.9%
11. Denver +20.8%
12. Los Angeles +19.9%
13. Portland +17.7%
14. Detroit +14.0%
15. New York +13.5%
16. Cleveland +13.3%
17. Boston +13.3%
18. Chicago +12.5%
19. Minneapolis +11.8%
20. Washington +11.2%

Phoenix is top of the year-over-year table for the 32nd consecutive month.

The national average was 19.2%, up from 18.8% last month.

A Key to Building Wealth is Home Ownership

The link between financial security and homeownership is especially important today as inflation rises.  But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:

“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”

Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.

Owning a Home Is a Building Block for Financial Success

A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of renters was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter (see visual below):

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates in value and you make your mortgage payments each month.

In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.

To sum it up, NAR says it simply:

“Homeownership has always been an important way to build wealth.”

Bottom Line

The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, talk with a trusted real estate advisor today.