The value of your home is increasing at an astonishing rate. Currently, there are only 4 states in the U.S. that have lower home value increases than inflation rate. The current inflation rate is about 2.5%. According the the map below there are 21 of the 50 states that are higher than 8% home value increase.
This is great news if you are a home owner looking to increase equity, but are these gains good for the real estate market? When home prices are going up at a higher rate than inflation they become less affordable. The longer we see double digit increases in percentage the harder it will be to buy. This is especially true for first time home buyers.