How to Increase Your Equity Over the Next 5 Years
Many of the questions currently surrounding the real estateindustry focus on home prices and where they are heading. The mostrecent Home Price Expectation Survey(HPES) helps target these projected answers.
Here are the results from the Q22019 Survey:
- Home values will appreciate by 4.1% in 2019
- The average annual appreciation will be 3.2% over the next 5years
- The cumulative appreciation will be 16.8% by 2023
- Even experts representing the most “bearish”quartile of the survey project a cumulative appreciation of over6.7% 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 doestheir equity.
Using the projections from the HPES, here is a look at thepotential equity a family could earn over the next five years ifthey 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-yearperiod.
Bottom Line
If you don’t yet own a home, now may be the time topurchase. Owning or moving up to your dream home could allow you toride the increase in equity of a growing asset.