Own vs. Rent – Real Estate Still Builds Wealth

Homeownership Still Pays High Dividends

A recent analysis of Federal Reserve data by the National Association of Realtors shows that homeownership is still a smart decision. The data shows that homeowners continue to have greater wealth than renters – even in this down market.

Positive equity still exists for most homes purchased since 2003 and negative equity situations vary according to region and community. In Northern California, home equity gains for homeowners who purchased in 2003 still average $105,000. Twenty-year homeowners in Northern California average $481,000 in home equity according to the data.

The data clearly shows that homeownership remains one of the strongest elements of wealth building for Americans.

Here is the home sales and median home price data for April.

Community	Zip	Sales	% Chg	Median Price	% Chg

Dublin	94568	32	-60.5%	$435,000	-5.4%
Pleasanton	94566	24	-20.0%	$655,000	0.8%
Pleasanton	94588	14	-41.7%	$492,500	-30.6%

Alamo	94507	14	-30.0%	$1,008,500	-16.8%
Concord	94518	31	-8.8%	$351,750	17.3%
Concord	94519	27	35.0%	$280,000	-21.1%
Concord	94520	48	118.2%	$128,750	-46.4%
Concord	94521	61	64.9%	$315,000	-23.9%
Danville	94506	16	-61.9%	$810,000	-5.5%
Danville	94526	19	-44.1%	$595,000	-23.7%
San Ramon	94582	61	-45.0%	$718,000	-11.4%
San Ramon	94583	31	-40.4%	$550,000	8.9%
Walnut Creek	94595	23	-37.8%	$447,500	-22.6%
Walnut Creek	94596	15	15.4%	$550,000	-33.9%
Walnut Creek	94597	18	38.5%	$427,000	-14.8%
Walnut Creek	94598	31	72.2%	$622,500	-12.3%