Rising Home Prices Help Build Wealth

Over the next five years, home prices are expected to appreciate, on average, by 3.6% per year and to grow by 18.2% 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 this 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 5.0% in 2018, the young homeowners will have gained $12,500 in equity in just one year.

Over a five-year period, their equity will increase by over $48,000! This figure does not even take into account their monthly principal mortgage payments, which also contributes to the equity in your home. 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. Your home, your investment.


Thinking of buying your first home? Give us a call and we’ll guide you through the process. And you can download our Buyer’s Guide for detailed information on the local market, the process, credit scores, down payments and more!!


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