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Publication Date

July 2005

Author(s)

Michael A. Stegman, Roberto G. Quercia, Walter R. Davis

Client/Funder

Ford Foundation

An early analysis of affordable home loans in a national pilot, the Community Advantage Program, between 1998 and 2002  appreciated on paper at a median annual rate that is less than the national house price appreciation index but higher than other types of investments, such as the Dow Jones Index and average rate on a 6-month CD.

In an early analysis of homes purchased in a national pilot called the Community Advantage Program (CAP), homes purchased between 1998 and 2002 are found to have appreciated on paper at a median annual rate of 5.4% between the time of purchase and spring 2003. This is less than the national house price appreciation index of 7.0% (covering 1998-2003) but higher than other types of investments such as the Dow Jones Index (2.78% annual growth rate over the same time period) and the average rate on a 6-month CD (4.34% over the same time period).

This impressive performance holds across different regions and states, with Community Advantage homes outperforming the 1998-2003 statewide averages in four of the 10 states with a substantial number of Community
Advantage homes.

 

 


Topics(s): Affordable Homeownership, Community Advantage Program, Impacts of Homeownership, Mortgage Finance