Spring Into

HOMEOWNERSHIP

Indeed, there truly is no place like home, and recent data reinforces that housing is one of the biggest positive drivers of wealth creation at every income level.
In fact, quantifying the wealth-building power of homeownership shows that home
is not only where your heart is, but also where your wealth is.

82,338 REASONS TO BUY A HOME TODAY
You need a place to live and you want to be worth more down the road than you are today. You can achieve both these goals by purchasing a home. Most experts are calling for home prices to continue appreciating over the nest several year. The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts and investment and market strategists, expect home appreciation to increase as follows:

2021 ............................................. 6%

2022 ............................................. 4.5%

2023 ............................................. 4%

2024 ............................................. 3.6%

2025 ............................................. 3.5%

Using their annual projections, we can see the equity build-up a purchaser could earn, using a
$350,000 home purchased in January 2021:

January 2022 .......................... $371,000

January 2023 .......................... $387,695

January 2024 .......................... $403,203

January 2025 .......................... $417,718

January 2026 .......................... $432,338

A homeowner could increase their net worth by $82,338 in just five years! That is an average of $16,000 annually. In addition, your mortgage acts as a forced savings account. Every month you pay your mortgage means a portion of your principal balance is paid down. This forced savings adds to the equity you build through appreciation. Homeownership provides you the financial security to make a major investment and then watch it grown over time.

Homeowners net wealth 40x greater

COMPARED TO RENTERS

Homeowners are going to make a substantial amount of money in home equity over the next five years – 40x more household wealth compared to that of a renter. If you’re ready to buy a home, seek the assistance of a local REALTOR®. A REALTOR® can help you determine your cost range for a home, map out your financial possibilities and parameters, find a home that fits your needs, and help you find the best mortgage options to make homeownership your reality this year.

Homeowner Net Worth – $255,000

A home, together with other assets made for over $255,00 in net worth, an impact that has made homeownership the best long-term investment. 35% of Americans chose real estate over stocks, bonds, savings account and gold. Homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home.

Renter Net Worth – $6,300

The net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready. With renting, your monthly housing cost works to the advantage of someone else… not your own.

Choosing to rent or buy your home is a major decision that affects not only your lifestyle but also your financial health. Trust the help of a real estate professional – a local REALTOR® – to help you determine your cost range for a home, map out financial possibilities and parameters, find a home that fits your needs and help you find the best mortgage options available. Make homeownership your reality this year.