Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
So, what does this mean for homeowners and their equity position?
As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?
Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.
Over a five-year period, their equity will increase by nearly $45,000! 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.
Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!
SOURCE: Keeping Current Matter
I take pride in building my business through referrals and trust. If you know a family who’s looking to be served by a competent Realtor with excellence, integrity and results, do call me at 707-567-1049.
About the Author:
Kasama Lee is a top-producing Realtor® and a community contributor specializing in the Napa and Solano Counties.
Kasama and her husband, Barton, are raising their two boys in American Canyon and have been
residents since 2002. They’re proud to contribute and give back as residents of this warm, friendly and supportive community.