Your Equity Position
Over the next five years, home prices are expected to appreciate 3.24%/year on average and to grow by 21.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
What does this mean for you and your home equity ?
Let’s assume a couple purchases and closes on a $250,000 home in January 2017. 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 predictions are that home prices will increase by 4.0% this year alone, the homeowners will have gained over $10,000 in equity in just one year.
Over a five-year period, their equity will increase by over $43,000! Remember, this figure does not even consider their monthly principal reduction when they make their mortgage payment. In many cases, home equity is one of the largest segments of a family’s overall net worth.
Real Estate Bottom Line
Home ownership is something to be proud! In addition, it offers you and your family the ability to build equity which then becomes part of your financial portfolio. If you are ready and willing to buy, let’s talk today to determine if you are able to qualify!
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