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Want to Build Wealth? Buy a Home This Year.

Reblogger
Real Estate Agent with Keller Williams Capital Partners Realty 277320

"There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home." This is absolutely true!

Best wishes for a successful week! Onward!

Original content by Kris Collis, Associate Broker AB067859

Want to Build Wealth? Buy a Home This Year.

Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most of the country.

There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home.

Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:

“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”

What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:Want to Build Wealth? Buy a Home This Year. | MyKCMThe typical gain in the sale of the home (equity) has increased significantly over the last five years.

CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.

What does the future look like for homeowners when it comes to equity?

Here are the seven major home price appreciation forecasts for 2021:Want to Build Wealth? Buy a Home This Year. | MyKCMThe National Association of Realtors (NAR) just reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.

Bottom Line

As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting. When you do, you may find this is the perfect time to jump into homeownership

Let’s connect to discuss what best fits your financial goals. Contact Kris Collis, your Trusted Pro in the Poconos, for professional results in all market fluctuations. With years of area knowledge and repeat clients from trusted service and personalized guidance each step of the way, let’s look at Pocono opportunities that benefit you.  The home you're looking for is here, whether for family, workplace, retirement or vacation/secondary home needs.

Welcome to the Poconos!


Courtesy: KCM

"A Trusted Relationship with Professional Results You Expect" 

Kris Collis, Associate Broker

Smart Way America Realty

Client Endorsements

East Stroudsburg, PA 18301

570-801-5525

Mail to: buysellpocono@gmail.com

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Comments (4)

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Mar 04, 2021 07:12 AM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Joe, whether it's you, Kris or the NAR the money keeps on talkin'. Thanks for the reblog I would not have found it otherwise.

Mar 04, 2021 09:41 AM
Dennis Dahlberg Broker/RI 623-582-4444
Level 4 Funding - Phoenix, AZ

Get out while the getting-is-good?  Something must break, it always does, nothing stays the same the market will move down. 

Mar 04, 2021 11:27 AM
Joe Manausa - Tallahassee, FL
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Great article you have shared Joe Jackson 

Mar 04, 2021 06:49 PM