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.
What does this mean to you?
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!
HOME BUYING TIMELINE
I want to buy a home within the year – what do I need to do to get ready?
FIND A REALTOR
1. FIND AN EXPERIENCED REALTOR YOU TRUST
2. DISCUSS MARKET CONDITIONS
3. CHECK OUT NEIGHBORHOODS
4. DISCUSS YOUR TIMELINE
5. DISCUSS WHAT TYPE OF PROPERTY YOU’RE LOOKING FOR
Finding the right Realtor could make all the difference in your homebuying experience.
via First Time Homebuyer.
Legacy Real Estate Group offers you Buyer Agency, which is full representation of a licensed Realtor looking out for your best interest, your advocate through the transaction.
Call me today to discuss your real estate goals.