The Long-Term Benefit of Homeownership
Romina D'Angelo October 4, 2022
Romina D'Angelo October 4, 2022
Today’s cooling housing market, the rise in mortgage rates, and mounting economic concerns have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to factor the long-term benefits of homeownership into your decision.
Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how you gain equity and wealth as home values grow with time.
The National Association of Realtors (NAR) explains:
“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Here’s a look at how just the home price appreciation piece can really add up over the years.
Even though home price appreciation has moderated this year, home values have still increased significantly in recent years. The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy those gains have been over the last five years.
If you look at the percent change in home prices, you can see home prices grew on average by almost 64% nationwide over that period.
That means a home’s value can increase substantially in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains you stand to make become even clearer (see map below):
If you’re a homeowner, odds are your equity has grown significantly over the last few years.
But how does this decision affect you and your plans to buy a home?
If you’re trying to decide if you’re ready to buy a home, there’s probably a lot on your mind.
Today’s market is still competitive in many areas because the supply of homes for sale is still low.
Many homeowners thinking about selling have two key things holding them back.
You've come across headlines talking about the increase in foreclosures.
As a seller, hearing that home sales are consistent right now is good news.
Here are some of the challenges you could face if you rent out your house.
There are still factors that can cause delays or even prevent a house from selling.
Romina has represented both sellers and buyers, her clients have come to depend on her considerable expertise and market knowledge.
