| If you’re thinking about buying a home soon, with 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 factors certainly are important, there’s more to consider as you ponder… think about the long-term benefits of homeownership. If you know people who bought a home 5, 10, or even 30 years ago, ask them if they have any regrets. My guess is you are probably going to have a hard time finding someone who regrets their decision. Why is that you ask? The answer … home values grow with time – and over that time is where your wealth (equity value) grows. That may be why, in a recent Fannie Mae survey 76% of respondents say they believe buying a home is a safe investment. Let’s take a look at how home price appreciation can really add up over time – highlighted in the map below emphasizing 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 below is broken out regionally to help convey larger market trends:  Source: FHFA If you look at the percent change in home prices, you can see home prices grew on average of 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 show drastic gains homeowners made over the years become even clearer (see map below):  Source FHFA The second map shows, nationwide, home prices appreciated by an average of over 297% over a roughly 30-year span. Yes, that’s right 297% appreciation! Did I get your attention? 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. Now that’s a lot of equity value you can take to the bank! 🙂 This is the key factor as to why so many homeowners who bought their homes years ago, are still happy with their decision. And while there was “talk” throughout the year that home prices would crash, this hasn’t happened. In fact, experts project, as time has shown – home prices will continue to rise for years to come. So if you are wondering if it still makes sense to buy a home today, let’s talk! I would be happy to answer any and all of your real estate questions, as it pertains to your particular situation, to help you determine if purchasing a home today makes sense for you. Keep in mind, while you can’t deny the market environment we are currently living in, understand that just as important as that, is to not loose sight of the long-term advantages that come along with homeownership. Laura The Key To Your Real Estate Success Helping buyers and sellers achieve their real estate goals. |
Unpacking the Long-Term Benefits of Homeownership
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