How to Increase Your Equity Over the Next 5 Years
Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recentHome Price Expectation Survey (HPES)helps target these projected answers.
Here are the results from theQ2 2019 Survey:
- Home values will appreciate by 4.1% in 2019 {Locally in the Research Triangle market projections are averaging 5%}
- The average annual appreciation will be 3.2% over the next 5 years
- The cumulative appreciation will be 16.8% by 2023
- Even experts representing the most bearish 25% of the survey respondents project a cumulative appreciation of over 6.7% by 2023
What does this mean for you?
A substantial portion of family wealth comes from home equity. As the value of a family's home (an asset) increases, so does their equity.
Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:
Based on gains in home equity, their family wealth could increase by $42,000 over that five-year period.
Bottom Line
If you don't yet own a home, now may be the time to purchase. Cumulative appreciation combined with incredibly low mortgage rates offer homebuyers a fantastic opportunity. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset.
Home Price Expectation survey&Every quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.
Simply fill out this form to receive your free home evaluation. Our experienced real estate team will review your home's details, and provide you with an up-to-date Comparable Market Analysis.
Posted by Larry Tollen on
Leave A Comment