Are you pondering the thought or idea of diving into the housing market quite soon? Well, It’s true that with escalating mortgage rates, surging home values, and the ever-present affordability questions to consider, one might hesitate the idea of homeownership and just put the idea on the back of their head entirely. Yet there’s totally more to the picture and more than what meets the eye. It’s just the tip of the iceberg, you might call it, as the enduring perks of owning a home are pivotal, and it has its fair share of advantages over just renting your space in the long run.
Let’s reflect on this, shall we? – if you chat with some folks who took the plunge and secured their homes maybe around 5, 10, or even three decades ago, it’s rare to find someone who regrets their dive into homeownership back then. What’s the homeowner’s secret? It’s the magic of how property values are gradually maturing over time and, as a result, bolstering their personal financial standing while enjoying the perks of owning their own home. In fact, according to a recent survey conducted by Fannie Mae, a whopping 76% of new homeowners attest that purchasing their home feels like a solid ground for their money. Talk about getting the most bang for your buck when you’re purchasing real estate.
Let’s go ahead and delve into how the mere appreciation of property prices can have a snowball effect on your assets over time.
Tracking Homeownership or Residential Value Increases
The chart or map below showcases significant home price elevations in the past half-decade, drawing from authoritative sources at the Federal Housing Finance Agency (FHFA). To paint a clearer picture of localized market movements, we’ve categorized the data by their respective regions accordingly.
When you go ahead and examine the percentage shift in property values, it’s evident that, nationally, homes appreciated in their value by a tad above 57% over half a decade.
While some areas hover a bit above or beneath this social norm, it’s undeniable that the real estate market has proven its worth in this brief time span. Stretch that lens a little bit further, and the tangible rewards of owning a home over the years stand out more vividly (refer to the accompanying map below).
The updated map reveals that across the country, the value of homes has surged by nearly 297% over the past three decades.
For a better perspective, this means that a homeowner who probably invested in a property 30 years ago or so would now see their home’s worth nearly tripling its normal value. This remarkable growth is one of the key reasons why many long-term homeowners feel content with their choices. It’s the waiting game but definitely a bang for your buck in the end; Just think of it as a long-term investment and how purchasing a home now can increase its value overtime.
Despite some chitter chatter this year hinting at a dip in home values you probably have heard from the media, the real estate market remains resilient in its tracks. Leading industry analysts and experts in the field anticipate that property prices will keep ascending in the foreseeable future.
Are you still pondering the idea of purchasing a home in today’s market? Just try to remember to weigh the enduring benefits of being a homeowner than being a renter. While there’s nothing wrong with just renting right now, real estate and finding a place you can call home is still one of the greatest investments you can try to push through to date. As you have noticed in the article, home values really do compound in the long run.
“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”
So whenever you feel ready to embark on this journey and take these first few steps to home ownership, Just know that the McT Real Estate Group is here to guide you with your real estate journey every step of the way.