Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
So, what does this mean for homeowners and their equity position?
As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?
Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.
Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.
Bottom Line
Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!
Contact a Lake Norman real estate agent today to help build wealth for you and yours!
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Cast off city living and choose Lake Norman waterfront living in this custom 5 bedroom/6.5 bath stucco and stone waterfront home in Mooresville. Great location, just a short walk to Lakeshore Elementary & Middle Schools. This Lake Norman waterfront foreclosure offers an elegant great room with double-sided fireplace, wood floors and floor to ceiling windows for amazing views of Lake Norman. Main floor master suite with custom master bath. Includes main floor office or library. Features formal dining room, inviting kitchen with granite countertops and breakfast bar for morning meals and afternoon snacks. Walk out basement with second living quarters, media room, wet bar, rec room and large covered patio.