Home prices are expected to appreciate an average of 3.24% annually and to grow by 21.4% cumulatively over the next five years. This is according to Pulsenomics’ Home Price Expectation Survey.
What does it mean for homeowners like you and their equity position?
For example, a young couple purchases and closes on a $250,000 home in January. Given the projected increase in the price of that home, the equity that they will earn over the next five years would be $43,201.
The experts predicted that home prices will increase by 4.00% this year alone. The young couple will have gained over $10,000 in equity in just one year.
In many cases, home equity is one of the biggest portions of a family’s overall net worth. Considering this, over a five-year period, the young couple’s equity will increase by over $43,000.
Owning a home is something to be proud of! But it also gives you and your family the ability to build equity you can borrow against in the future.