Special offer

Home Appreciation History: Your Home is a GREAT long term investment

Mortgage and Lending with CMG Home Loans NMLS 248937

Real Estate is STILL a good Long term investment.

With the latest housing numbers coming out this week for 2023 with Redfin showing price increases of over 6% in 2023, Core logic at 5.5% and Black Knight at 5.6%.

We are still waiting for FHFA and Case-Shiller's December numbers.  as of November FHFA had the year over year number at 6.6% increase.

(For me, I consider the FHFA number to be a realistic number for the average buyer since it is based on purchases of homes using a conforming loan amount with an FHA, VA, FNMA FHLMC or USDA loan.  another fun piece of this is it pretty clearly shows that sellers are leaving money on the table when they accept a lower priced cash offer.)

Core Logic also released its forecast for 2024 looking for a 3% increase in value, This just happens to be what they said last year as well yet their own number had 2023 at 5.5% for the year..  Historically speaking Core Logic has been very conservative on their forecasts, missing by a BUNCH the past 5 years.

Instead of looking at forecasts, lets take a peek at history.  The Chart below shows what happened to your value if you purchased a home and held it for 10 years for every year since 1942 (1942 is the first year data was collected).  

As you can see, there is only 1 year where you would have lost, 2006. If you purchased a 100,000 Home in 2006 and sold it in 2016  you would have lost $2,767, a little shy of 3%. Keep in mind that if you had a 90LTV mortgage you would have reduced your mortgage balance by considerably more than that. 

Most years gave you significant gains in 10yrs 

Buy, Hold, Enjoy.  Owning a home is not only the American Dream, but it is also a profitable endeavor. It also locks in a predicable payment VS rent which will likely increase every year.

If you are looking to purchase or refinance a home in NJ, please give me a call, I can also help you in all 50 states, CMG is licensed throughout the country.

Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf 
Office: (732)908-4868  Cell (732)740-0175 


Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans  is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit  www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Roy Kelley
Retired - Gaithersburg, MD

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

Feb 06, 2024 10:06 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Roy Kelley It certainly is and it's great to have a visual to share to support that. 

Feb 06, 2024 12:36 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Robert - financial appreciation is a definite advantage in home ownership.  Beyond that there are abundant reasons why real estate continues to be a wise decision for people who are able to achieve it.  Opening up opportunities for building responsibility remains a challenge for many.  

Feb 06, 2024 06:33 PM
Robert Rauf
CMG Home Loans - Toms River, NJ

Michael Jacobs  there are numerous advantages beyond the investment side for sure... Stable monthly payment, Pride of ownership, Tax advantages - The list goes on and on for sure beyond the dollars and cents.


Feb 08, 2024 07:37 AM