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 you purchase and close 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 you earn over the next 5 years?
Since the experts predict that home prices will increase by 4.2% in 2018, you will have gained $10,500 in equity in just one year.
Over a five-year period, your equity will increase by nearly $45,000! This figure does not even take into account your 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, let us help you make this $45,000 or more a reality! Call or email us today to get started.