Regina Harris

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Want To Increase Your Familys Wealth? Heres How!

March 18th, 2019

Want To Increase Your Familys Wealth? Heres How! | Simplifying The Market

Everyone should realize that unless you are living somewhere rent-free, you are paying a mortgage  either yours or your landlords. Buying your own home provides you with a form of forced savings that allows you to use your monthly housing costs to increase your familys wealth.

Every month that you pay your mortgage, you are paying off a portion of the debt that you took on to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equityAs your homes value increases, you also gain home equity.

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists. They are asked to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

The latest data from their Q1 2019 Survey revealed that home prices are expected to round out the year 4.3% higher than they were in January. For the next 5 years, home values will appreciate by an average of 3.21% a year.

This is great news for homeowners!

For example, lets assume a young couple purchased and closed on a $250,000 home in January of this year. Simply through their home appreciating in value, those homeowners can build their home equity by over $40,000 over the next five years.

Want To Increase Your Familys Wealth? Heres How! | Simplifying The Market

Lets look at the potential equity gained over the same period of time at some higher price points:

Want To Increase Your Familys Wealth? Heres How! | Simplifying The Market

In many cases, home equity is a large portion of a familys overall net worth.

Bottom Line

Whether its your first or your fifth, if your plan for this year includes buying a home, lets get together to help you understand where prices are headed in our area.

Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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