“Here’s a look at how just the home price appreciation piece can really add up over the years.”
If you’re thinking about buying a home soon, higher mortgage rates, rising home prices, and ongoing affordability concerns may make you wonder if it still makes sense to buy a home right now. While those market factors are important, there’s more to consider. You should think about the long-term benefits of homeownership too.
Think about this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey, 76% of respondents say they believe buying a home is a safe investment.
Here’s a look at how just the home price appreciation piece can really add up over the years.
Home Price Growth over Time
The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since home prices vary by area, the map is broken out regionally to help convey larger market trends:
If you look at the percent change in home prices, you can see home prices grew on average by just over 57% nationwide over a five-year period.
Some regions are slightly above or below that average, but overall, home prices gained solid ground in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer (see map below):
The second map shows, nationwide, home prices appreciated by an average of over 297% over a roughly 30-year span.
This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision.
And while you may have heard talk throughout the year that home prices would crash, it hasn’t happened. In fact, experts project home prices will continue to rise for years to come.
Bottom Line
If you’re wondering if it still makes sense to buy a home today, it’s important to focus on the long-term advantages that come with homeownership. When you’re ready to start your homebuying journey, let’s chat.
To view original article, visit Keeping Current Matters.
Working with a Local Real Estate Professional Makes All the Difference
A real estate professional can explain current market conditions and break down what they will mean to you and your family.
Year-Over-Year Rental Prices on the Rise
Why not lock down your monthly housing expense, and at the same time build additional net worth for you and your family? We can help you!
When a House Becomes a Happy Home
There’s no place like home! The emotional reasons of owning a home might outweigh the financial ones. Let’s get together and talk about homeownership!
2020 Forecast Shows Continued Home Price Appreciation
Experts forecast home price appreciation to continue at a moderate rate as we move through 2020 and beyond.
Where is the Housing Market Headed in 2020?
The Real Estate Market is projected to have a GREAT year in 2020! Number of homes sold next year will equal or outpace 2019.
5,300 Reasons to Be Happy You’re a Homeowner
The average homeowner gain in equity over the last twelve months was $5,300. How much equity have you gained?