Why Owning a Home Is Worth It in the Long Run

In today’s slower market due to mortgage rates and home prices, renters are constantly second-guessing buying a home. While it is important to keep market factors in mind, it’s also important to think bigger picture and long-term. If you ask anyone that bought a home 5 years ago or longer, I can assure you that you will struggle to find someone that regrets their decision to do so and that is because their net worth has increased from when they made the purchase. 

Home Price Growth Over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show how much prices have grown over the last five years nationwide. 

Obviously price growth varies by state and different regions, but overall, that is a significant increase in a short amount of time, and they’re only projected to keep climbing. Over roughly 30 years, home prices have appreciated by an average of more than 320% nationally, which means homes tripled in value! This all being said, it is also important to keep in mind that home prices are only projected to continue to increase, maybe not at the same rate of the last 5 years, but when you hold off on buying this year, know that the same home next year will only cost you more. 

Bottom Line

It is a complex market currently, but we will always say, if you’re ready and able to buy, do it. If you are in a position where you would like to discuss the opportunities of buying a home, contact Jim Slater today at 612-590-1802. You will want to be advised on this decision, as it will be one of the most important decisions of your life, and we are here to help you through every step of the way to begin building your wealth.

Source

Coldwell Banker Realty