Buying a home is your future nest egg

Dated: July 30 2019

Views: 86

How to Increase Your Equity Over the Next 5 Years

How to Increase Your Equity Over the Next 5 Years | MyKCM

Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers.

Here are the results from the Q2 2019 Survey:

  • Home values will appreciate by 4.1% in 2019
  • The average annual appreciation will be 3.2% over the next 5 years
  • The cumulative appreciation will be 16.8% by 2023
  • Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% 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 does their equity.

Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:How to Increase Your Equity Over the Next 5 Years | MyKCMBased on gains in home equity, their family wealth could increase by $42,000 over that five-year period.

Bottom Line

If you don’t yet own a home, now may be the time to purchase. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset.

Home Price Expectation survey - Every quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.
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Karen Spinks

I love being a Realtor because it allows me to meet and work with the greatest people! I enjoy helping them find just the right home or assisting them in the sale of their home as they move to another....

2 comments in this topic

  • Posted by Jeane Hunsucker Patterson
    01/25/2020
    Hi Karen! I guess I was unclear in the location and type of home
  • Posted by Jeane Hunsucker Patterson
    01/25/2020
    Was I Iunclear about what were searching for. ? 4 br, 3 baths, must have a private in ground pool, with a water view/access,, boat dock. If we cant find all of that for, at the most, $800,00, then my list turns into a beach cottage type, walking distance to the ocean and still an in ground pool!! It doesnt have to be in the super fancy, or pricey areas, just has to have decent schools, our grandson lives with us and his education is extremely important to us. We like the Venice and Naples areas but, we have very close (high school) friends that live in Bradenton. Can you guide me to an area with a great house and all the hopes I have....I need you to find it for me!!!!! Thanks Karen! Take care, Jeane

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