Home Equity Increase Projections for the Next Five Years – Don’t Miss Out

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

  • Home values will appreciate by 4.1% in 2019
  • The average annual appreciation will be 3.2% over the next 5 years
  • The cumulative appreciation will be 16.8% by 2023
  • Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% by 2023

What does this mean for you?

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.

Using the projections from the HPES, here is a look at the potential equity you could earn over the next five years if you purchased a $250,000 home in January of 2019:How to Increase Your Equity Over the Next 5 Years | MyKCM

Based on gains in home equity, your wealth could increase by $42,000 over that five-year period.

Bottom Line

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.

Home Price Expectation surveyEvery quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.