Homeowners living near a Trader Joe’s grocery store saw their property values increase an average 67 percent over five years, according to a study released by real estate data firm ATTOM Data Solutions. Owners close to Whole Foods—a trendier and pricier grocery option—didn’t fare as well, garnering 52 percent appreciation in home value over the same time period. Those with an Aldi nearby saw a 51 percent increase.
The average home price appreciation for ZIP codes with all three grocery stores was 54 percent, according to ATTOM Data Solutions. For the study, researchers culled U.S. Department of Housing and Urban Development data on sale and rental prices in ZIP codes nationwide that have at least one of each grocery store.
Recently there has been a lot of talk about home prices and if they are accelerating too quickly. As we mentioned before, in some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers who are out looking for homes, which has caused prices to rise.
The great news about rising prices, however, is that according to CoreLogic’s Homeowner Equity Report, the average American household gained over $14,000 in equity over the course of the last year, largely due to home value increases.
The map below was created using the same report from CoreLogic and shows the average equity gain per mortgaged home during the 1st quarter of 2017 (the latest data available).
If you’re taking out a home equity line of credit, the amount of available Glossary Term:equity layer you have in your home plays an important role. Your home equity is the difference between the Glossary Term:appraised value layer of your home and your current mortgage balance(s). The more equity you have, the more financing options may be available to you.
Your equity helps your Glossary Term:lender layer determine your Glossary Term:loan-to-value ratio layer (or LTV), which is one of the factors your lender will consider when deciding whether or not to approve your application. It also helps your lender determine whether or not you’ll have to pay for Glossary Term:private mortgage insurance layer (PMI). To avoid PMI, your LTV typically needs to