It’s no secret that home values have been increasing in the past year. The National Association of Realtors puts the increase in the median price of a home at 7.1%.
Another report separated home price appreciation into four distinct price categories, rated as a percentage of the median price:
- Homes priced 75% or less
- Homes priced from 75% to 100%
- Homes priced 100% to 125%
- Homes priced in excess of 125%
The results showed that homes priced at priced 75% or less of the median price appreciated the most, at 10%. The next group, the homes in the 75% to 100% of the median rose 8.3%. The group priced from 100% to 125% rose 7.3% and the higher priced homes, the ones above 125% of the median price appreciated by 5.5%
This tells me the lower priced homes appreciated in price more, as a percentage, than the higher priced homes. Without doing the math, it seems that, even though the percentage was less, the higher priced homes rose more in dollar value.
