Spring is here, and it’s certainly worth celebrating! Two big San Francisco events do just that, in wildly different ways, and a third event is just plain crazy! Holi is the Indian festival of colors, and on Saturday the biggest Holi event in San Francisco takes place at California College of the Arts. On the other side of town, on Sunday in Cow Hollow, a second spring event takes place — the 27th Annual Union Street Easter Parade & Spring Celebration. And the crazy event? The Bring Your Own Big Wheel (BYOBW) races at Vermont Street at 20th. Big people on tiny plastic big wheel bikes racing down the curviest street in the City!
On the “Homes for Sale in San Francisco” front, here’s our report for this week, 3/25/18 – 3/31/18
How Homeownership Affects Household Wealth
It is conventional wisdom that homeownership is key to household wealth, and the National Association of Home Builders makes a convincing argument for that theory according to Mortgage News Daily.
Based on data from the Federal Reserve’s 2016 Survey of Consumer Finances (SCF), not only does equity in a home constitute the largest component of aggregate wealth nationwide, it has a strong correlation with other sources of wealth on an individual basis.
The $24.2 trillion aggregate worth of primary residences constitutes about a quarter of all wealth on the balance sheets of households, surpassing “other financial assets” which include loans to someone else, future proceeds, royalties, futures, non-public stock, deferred compensation, oil/gas/mineral investments, and cash, a category valued at $20.2 trillion, and $19.3 trillion in business interests. Each of those account for about 20 percent of all wealth. The next largest slice of the pie is $15 trillion held in retirement accounts. Stocks and Bonds account for 7 percent of all wealth, at $6.9 trillion.
The report concludes by saying that across the nation among homeowners under the age of 45, home equity was the largest category of the household’s net worth. However, for homeowners above the age of 45, non-primary residence equity eclipses home equity as the larger portion of net worth, reflecting the accumulation of other assets by homeowners in later life stages.