The Connection Between Home Prices & Family Wealth

Great statistics from Pulsenomics about expectations for home equity over the next 5 years.  Home ownership is still the best way to build net worth.  Just look at the graph below.  Who doesn’t want that kind of financial growth over 5 years?  Give me a call and let’s start looking for your new home so you can start building wealth for you and your family!

Courtesy of Keeping Current Matters March 2017

The Connection Between Home Prices & Family Wealth | MyKCM

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?

The Connection Between Home Prices & Family Wealth | MyKCM

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, find out if you are able to today!

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and to start building equity in a home of your own!


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