Property appreciation rates for single-family residential home sales are generally much higher for larger homes, according to a new report by mortgage technology company FNC.
“A profile of long-term trends in how different types of properties have appreciated over the years shows that larger homes have generally risen in value faster than smaller homes both before and after the last boom-bust housing cycle. The gap persisted, although narrowed quite a bit, during the worst of the housing recession,” said Robert Dorsey, FNC co-founder and chief of data and analytics.
The report tracks and analyzes characteristics of residential home sales such as property age, living area size, ownership duration, loan origination vintage, and home foreclosures compiled through FNC’s National Collateral Database.
Other additional facts include:
- Median sales prices on normal sales are up 30% since 2011, from $160,000 (early 2011) to $208,000 (October 2014).
- Home prices rose about 17% 2011 to date, according to the FNC Residential Price Index
- The latest October data shows that price per square foot among normal sales is $120.3, compared to $73.2 on foreclosure sales.
- Normal-sale properties are typically larger than foreclosure sales: 1,690 square feet versus 1,450 square feet for foreclosures
- Foreclosed properties are typically older than normal-sale properties: 30 years versus 25 years for normal sales