Winning Strategies in Real Estate: The Connection Between Home Prices & Family Wealth

The Connection Between Home Prices & Family Wealth

family wealth

Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% 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 purchased and closed on 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?

projected

Since the experts predict that home prices will increase by 4.4% this year alone, the young homeowners will have gained $11,000 in equity in just one year.

Over a five-year period, their equity will increase by nearly $43,000! 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.

Bottom Line

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, call me and find out if you are able to today!

 

Tony Morganti, CRS, ABR

330-352-9513

Comment balloon 2 commentsTony Morganti • March 06 2017 03:45PM

Comments

That is the true American way to wealth and compound prosperity.

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Realty One Group) over 1 year ago

Real estate is the single best gateway to personal wealth. 

Posted by Mick Michaud, Your Texas Lifestyle is Here! (Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107) over 1 year ago

Participate