Want To Increase Your Family's Wealth? Here's How!

Everyone should realize that unless you are living somewhererent-free, you are paying a mortgage – either yoursor your landlord’s. Buying your own home providesyou with a form of ‘forcedsavings’ that allows you to use your monthlyhousing costs to increase your family’s wealth.

Every month that you pay your mortgage, you are paying off aportion of the debt that you took on to purchase your home.Therefore, you own a little bit more of your home every month inthe form of homeequity. As your home’s value increases,you also gain home equity.

Every quarter, Pulsenomics surveys anationwide panel of over 100 economists, real estate experts, andinvestment and market strategists. They are asked to project howresidential home prices will appreciate over the next five yearsfor their HomePrice Expectation Survey (HPES).

The latest data from their Q1 2019Survey revealed that home prices are expected to roundout the year 4.3% higher than they were in January. For the next 5years, home values will appreciate by an average of 3.21% ayear.

This is great news for homeowners!

For example, let’s assume a young couple purchased andclosed on a $250,000 home in January of this year. Simply throughtheir home appreciating in value, those homeowners can build theirhome equity by over $40,000 over the next five years.

Let’s look at the potential equity gained overthe same period of time at some higher price points:

In many cases, home equity is a large portion of afamily’s overall net worth.

Bottom Line

Whether it’s your first or your fifth, if your plan forthis year includes buying a home, let’s get together to helpyou understand where prices are headed in our area.