Often we look back and say, “I wish I would have …” This is particularly true of homeownership when we hear of someone who purchased a home years ago for what now seems like a ridiculously low price. At the time it didn’t seem like a “ridiculously low price”. So the more relevant question is where are home prices now and where are they headed? What can I expect my home equity to be in five years? Let’s take a look at the experts’ predictions.
The most recent Home Price Expectation Survey (HPES) helps target these projected answers.
Here are the results from the HPES Q2 2019 Survey
It’s good news. Typically, a substantial portion of family wealth comes from home equity. As the value of your home increases, so does your equity, hence, so does your wealth. If you don’t currently own your own home, it may be time to rethink why not.
Based on gains in home equity, your wealth could increase by $42,000 over that five-year period.
If you don’t yet own a home, now may be the time to purchase. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset. If you need to finance, here’s a great article on finding the right financing.