Have the current market conditions made you question whether you should buy a home this year? It might be time to think again.
It’s no surprise that the cooling off of the housing market is causing uncertainty among home buyers. However, there is a significant long-term benefit of homeownership. This benefit should factor into your buying decision — and perhaps convince you to take the plunge.
First, do you know anyone who bought a house five, ten, or even twenty years ago? If so, it’s likely that they are happy with their decision. But why is that? The answer is equity.
According to the National Association of REALTORS®,
“Equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Therefore, as you make monthly payments, you actually build equity and gain wealth.
So how does price appreciation actually add up as time goes on? Data compiled from the Federal Housing Finance Agency illustrates that there have been noteworthy gains in home values over the last five years. Specifically, prices grew on average by nearly 64 percent nationwide. This means that even though price appreciation has slowed down in 2022, values have still risen greatly in the last few years. It also means that home values can — and often do — increase significantly in a short time.
When you expand the time period from five years to thirty years, the drastic gains in home prices become even more clear. Since 1991, across the country, home prices appreciated by an average of 290%. This statistic shows that the typical homeowner who invested in a home three decades ago has seen their house triple in value. Of course they don’t regret their decision to buy a home!
In conclusion, even if prices continue to cool this year, economists still expect them to appreciate nationally in 2023. In most markets, it’s a pretty sure bet that your house will grow in value over the next year. The rate of appreciation may be slower, but it’s still a plus for you.
Are you ready to make an investment in your future that will benefit you long term? Contact your local real estate specialist at SurterreProperties.com today to get started.
Source: KeepingCurrentMatters.com
