Today’s mortgage rates and home prices may have you second-guessing whether it’s still a good idea to buy a home right now. While market factors are definitely important, there’s also a bigger picture to consider: the long-term benefits of homeownership.
Think of it this way. If you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. That’s because over time, home values usually grow – and that means a homeowner’s net worth does too. Here’s a look at how that can really add up over the years.
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. Since home prices vary by area, the map is broken out regionally to really showcase larger market trends:
You can see that nationally, home prices increased by over 57% in just five years.
Home prices surged overall, with regional variations. The long-term benefits of homeownership become even clearer over time. (see map below):
The second map shows that, over a roughly 30-year span, home prices appreciated by an average of more than 320% nationally.
Homeowners who bought 30 years ago saw their home’s value triple, which is why many are still happy with decision.
Bottom Line
There’s no denying today’s market is complex. If you’re ready to buy, let’s connect and discuss how homeownership can help you build wealth over time.
