Equity Appreciation = Family Wealth
Over the next 5 years, home prices are projected to appreciate 3.64%/year on average and to grow by 18.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
What does this mean for homeowners and their equity position?
Let’s assume a couple purchased a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?
Since industry experts predict home prices will increase by 5.0% in 2017 alone, these homeowners will have gained $12,500 in equity in just 1 year.
Over a five-year period, their equity will increase by nearly $49,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.
Real Estate Bottom Line
Not only is home ownership something to be proud of, it also offers you and your family the ability to build equity for financial security. If you are ready and willing to buy, let’s talk today!
Leave a Reply