There are Benefits...

By
Real Estate Agent with Keller Williams Realty Evolution - Topsfield, MA 92593-B

Homeownership is the dream of many, not all, but, I'd say the majority of people look to that day they purchase a home. When we are in crazy times, such as the ones we are currently living through, taxes spiral, wages don't keep up, unfettered inflation and recession rear their ugly heads, interest rates trend upwards, and much more. This may cause people to wonder whether homeownership is in their future. However, we must remember that homeownership has benefits. You may need to delay your dream or make other sacrifices to reach the goal BUT never ever give up on owning a home.

In the article below we will see some of the benefits of homeownership.

The Long-Term Benefit of Homeownership

The Long-Term Benefit of Homeownership

Today’s cooling housing market, the rise in mortgage rates, and mounting economic concerns have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to factor the long-term benefits of homeownership into your decision.

Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how you gain equity and wealth as home values grow with time.

The National Association of Realtors (NAR) explains:

“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.

Here’s a look at how just the home price appreciation piece can really add up over the years.

Home Price Growth Over Time

Even though home price appreciation has moderated this year, home values have still increased significantly in recent years. The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy those gains have been over the last five years.

The Long-Term Benefit of Homeownership | Keeping Current Matters

If you look at the percent change in home prices, you can see home prices grew on average by almost 64% nationwide over that period. 

That means a home’s value can increase substantially in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains you stand to make become even clearer (see map below):

The Long-Term Benefit of Homeownership | Keeping Current Matters

The second map shows, nationwide, home prices appreciated by an average of over 290% over roughly a thirty-year span.

While home price growth varies by state and local area, the nationwide average tells you the typical homeowner who bought a house thirty years ago saw their home almost triple in value over that time. This is why homeowners who bought their homes years ago are still happy with their decision.

Even if home price appreciation eases as the market cools this year, experts say home prices are still expected to appreciate nationally in 2023. That means, in most markets, your home should grow in value over the next year even if the pace is slower than it was during the peak market frenzy when prices skyrocketed.

The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and fight annual lease hikes for no long-term financial benefit? Instead, consider buying a home. It’s an investment in your future that could set you up for long-term gains.

Bottom Line

Don’t let the shifting market delay your dreams. Data shows home values typically appreciate over time, and that gives your net worth a nice boost. If you’re ready to start your journey to homeownership, reach out to a real estate professional today.

Thank you to KCM for compiling the information

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (6)

faye schubert
Branson, MO
Living the Branson Lake Life

Owning a home is still my best investment.

Oct 05, 2022 10:39 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Doug,

Great post..home ownership is the best route for long term wealth growth. The home price growth varies by state and local area, but the nationwide average tells you the its a wise investment. isn't it amazing to read if you bought 30 years ago your home would have tripled in value and in many areas more than that.

Oct 05, 2022 01:57 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning faye schubert 

You are 100% correct. Real Estate is, by far, the best and most stable investment 

Oct 06, 2022 06:05 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Dorie Dillard Austin TX 

From very early on in mankind's history Real Estate has been a symbol of and generator of wealth. There's no better investment. Too bad our fiat currency keeps getting weakened. But, Real Estate keeps up

Oct 06, 2022 06:08 AM
Roy Kelley
Retired - Gaithersburg, MD

This is a good report to share.

Home ownership continues to provide the best pathway to family wealth.

Oct 08, 2022 06:54 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Roy Kelley I was reviewing my blog roll and saw that you replied. Have a great Sunday and rest if the week 

Oct 16, 2022 06:19 AM