What Is The Shining Star Long Term Benefit Of Homeownership?
Have you ever wondered about the long-term benefits of owning a home?
As a buyer in today’s market, you may be feeling a little uneasy with the current market, rising mortgage rates and economic conditions, but it is also important to consider the long-term benefit of homeownership when making your decision to buy. Most likely if you speak to someone who has been in their home for a lengthy period, they do not regret their decision due to the equity they have built over the years.
Today, home equity is the shining star of the housing market. According to the National Association of Realtors, “Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments” and although we are seeing the market shift, homes are continuing to appreciate at moderate levels.
Experts are predicting home prices will still continue to appreciate nationally in 2023. And if you are planning to remain in your home for a length of time, you should see growth year after year. This is a long-term investment benefit that will increase your net worth and set you up for long term financial gains.
According to Odeta Kushi, Deputy chief economist for First American, “Homeowners nationally had an average of $320,000 in inflation adjusted equity in their homes in the second quarter of 2022, an all-time high”. AND for some homeowners, home equity is the only source of creating more wealth.
So, the bottom line is, if you are in a position to buy, do not let current conditions sway you from achieving your home ownership dreams. You need to consider the long-term investment for your future.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2022 real estate forecast, don't hesitate to reach out - we're happy to help!