“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.
How Long Can This Economic Recovery Last?
The economy is currently experiencing the longest recovery in our nation’s history. How long can this economic recovery last?
Buyers Are Looking Now. Are You Ready to List Your Home?
If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t giving up anytime soon.
Expert Advice: 3 Benefits to Owning a Home
Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth.
2 Myths Holding Back Home Buyers
Don’t let these common myths get in the way of owning the home of your dreams. More often than not, your dream home is within your reach.
Watch The Video: 22 Sedgemere Road, Center Moriches
Spacious, one of a kind, waterfront home on Areskonk Creek in Center Moriches.
The Cost of Renting vs. Buying a Home
Before you renew your lease, find out if you can put your housing costs to work by buying a home this year. Call BrookHampton Realty today!