There are many reasons you may want to buy a home this year, despite the current housing market and economic conditions. While there are some unique challenges for homebuyers this year, it’s important to factor in the long-term benefits of homeownership when making your decision.
Some of the benefits of homeownership include stability, tax breaks, and building equity. So even though the current market conditions present some challenges, the long-term benefits of owning a home still make it a wise investment.
People who have owned homes for 5, 10, or 30 years generally do not regret their decision. This is because the equity and wealth gained as home values grow over time are substantial.
The National Association of Realtors (NAR) explains:
“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Here’s a look at how just the home price appreciation piece can really add up over the years.
Home Price Appreciation Over The Years
The map below displays how many home values have increased over the past five years, according to data from the Federal Housing Finance Agency (FHFA). Even though appreciation has slowed this year, values are still up significantly from where they were in 2013.
A home’s value can go up a lot in a short period of time. If you look at it over a longer period of time, the benefit of homeownership and the drastic gains you can make become even more clear.
The average homeowner who purchased a home thirty years ago has seen the value of their home almost triple. This is why homeowners who bought their homes years ago are still happy with their decision.
Although home price appreciation is projected to slow down this year, it is still expected to grow nationally by 2023. This means that in most markets, your home’s value should go up even if the growth is slower than it was during the peak market frenzy.
The option of buying a home is different from renting, and the price of rent has been increasing for many years. So why rent and pay more money each year with no long-term financial gain? Instead, consider buying a home. It’s an investment in your future that could set you up for long-term success.
Sandi & Debbie Say…
Don’t let the changing market stop you from achieving your dreams. Data shows that home values typically increase over time, which gives your net worth a nice boost. If you’re ready to start your journey to homeownership, let’s connect today.
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