Square footage isn’t always the best way to measure a home’s value. The price for two homes with the exact same square footage can be very different based on their features, upkeep, etc. But while it may not be the best way to measure a home’s worth, it is a commonly cited data point and its ups-and-downs can tell us something about the market. In the case of a recent analysis from the National Association of Realtors’ consumer website, what it tells us is buying a home has gotten significantly more expensive over the past few years. In fact, based on price per square foot, the typical home on the market today is worth 52.7 percent more than it was in 2019. Danielle Hale, the website’s chief economist, says that presents an opportunity for home sellers. “The specifics will vary from market to market, but the data suggest ongoing opportunity for many sellers,” Hale said. “Though with mortgage rates still much higher than many existing homeowners enjoy, this opportunity favors sellers who don’t have to replace a mortgage, such as investors or second homeowners looking for an exit, or equity-rich homeowners looking to downsize in their current area or to a lower-cost region, as well as those planning to rent their next home.” (source)
