Unlocking Wealth: Why Your Home Is Your Most Powerful Investment
Remember all the talk in early 2023 about a recession triggering a housing market crash? Media predictions of home prices dropping 10-20% might have put a damper on your homebuying dreams.
Well, guess what? The opposite happened. Home prices actually rose more than usual!
But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains:
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”Let's see how last year's price increase stacks up! The graph below uses data from Freddie Mac to show how home prices have changed annually since 1980. The dotted line? That's the average yearly appreciation over that time.
The big takeaway? Home prices almost always go up.
As an article from Forbes says:
“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”
Why Homeownership Can Be a Smart Move: A Look Back and Forward
Remember the red bars on the graph? Those were the only years since 1980 when home prices dipped – during the housing market crash of 2008. Thankfully, today's market is much different. There's a shortage of homes, and homeowners have significant equity in their properties, making mass foreclosures unlikely. This translates to stability – home values have historically increased, making homeownership a great way to build wealth.
As a homeowner, you're investing in something that typically appreciates over time. This appreciation grows your net worth, giving you a solid financial foundation. If you're financially secure and ready for the responsibilities of homeownership, buying a home could be a smart and rewarding move.
Ready to Build Your Future?
History shows homeownership is a smart path to long-term wealth. If you're financially stable and considering buying a home, let's chat! I can help you explore your goals and find the perfect property in our area. Together, we can turn your dream of homeownership into reality.