March 6th, 2017 9:43 AM by Tenby Dahman
Over the next five years,
home prices are expected to appreciate
3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most
recent Home Price Expectation Survey.
So, what does this mean for homeowners and their equity
As an example, let’s assume a young couple purchased and closed
on a $250,000 home in January. If we look at only the projected increase in the
price of that home, how much equity will they earn over the next 5 years?
Since the experts predict that home prices will increase by 4.4%
this year alone, the young homeowners will have gained $11,000 in equity in
just one year.
Over a five-year
period, their equity will increase by nearly $43,000! This
figure does not even take into account their monthly principal mortgage
payments. In many cases, home equity is one of the largest portions of a
family’s overall net worth.
Not only is home ownership something to be proud of, but it also
offers you and your family the ability to build equity you can borrow against
in the future. If you are ready and willing to buy, find out if you are able to