When did you buy? Check the down years for equity

The average home is typically a wise investment – depending upon when you bought and how much you paid.

A closer look at data provided by the National Association of Realtors, however, reveals that sellers who purchased their home during certain volatile years tend to fare worse than others.

The national average for homeowners who purchased their home eight to 10 years ago – from 2005 to 2007, during the height of the real estate bubble – have earned just $3,000 or 1 percent in equity, according to Jessica Lautz, NAR’s managing director of survey research and communication. Those owners may show the most reluctance to sell their homes, and that may be adding to the inventory shortage in many cities, Lautz wrote.

Take a closer look at NAR’s latest profile of buyers and sellers report at the breakdown below to see who fares the best in the equity picture. The graph is a national average:

Tenure in home Equity earned % gain in equity
1 year or less $31,000 14
2-3 years $30,000 15
4-5 years $35,000 19
6-7 years $31,000 14
8-10 years $3,000 1
11-15 years $38,000 23
16-20 years $95,000 63
21-plus years $138,000 145
All sellers $40,000 23