“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.
3 Things to Know in the Housing Market Today!
We are in a strong housing market. Whether you are thinking of buying or selling, it’s a great time to be in the market.
Renting or Owning, What Is Better for You?
Whether you rent or buy depends on your life situation. If you are interested in becoming a homeowner, we are happy to help you!
2 Myths Holding Back Home Buyers
In a recently released report, Freddie Mac states “For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership.”
Open House! $499,000
Sunday, June 9, 2019
2PM – 4PM
3 Winnie Road, Center Moriches, NY 11934
What is the Cost of Waiting Until Next Year to Buy?
The ‘cost of waiting to buy’ is defined as the funds necessary to buy a home if prices and interest rates increase over a period of time.
Open House! $499,000
Sunday, June 9, 2019
12PM – 2PM
67 Belleview Avenue, Center Moriches, NY