“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258, . . .”
Mark Fleming, Chief Economist at First American, points out that a home is truly a one-of-a-kind asset. It’s the only asset that’s both an investment and a place for you to call your own.
“The major financial advantage of homeownership is the accumulation of equity in the form of house price appreciation. . . . We won’t always have 17% house price appreciation, but we have to take into account the fact that the shelter that you're owning is an equity-generating or wealth-generating asset.”
Homeowners can leverage the wealth they generate in several ways throughout their life. Tapping into accumulated equity has long been used to pay for the cost of an education, to start a business, or to fund various other expenses. The Joint Center of Housing Studies at Harvard points out:
“. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be used for retirement or other needs, including helping the next generation.”
With home prices expected to continue to appreciate in coming years, homebuyers have an opportunity to start the long-term wealth-building process right now. Let’s connect today if you’re ready to begin your journey on the path to becoming a homeowner.
Author:Kristi Murphy Phone: 513-310-3683 Dated: October 13th 2021 Views: 12 About Kristi: I am proud to have called Cincinnati home since 1999. My approach to real estate is to sell with int...
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Knowledgeable, energetic, and passionate are just a few words used to describe this vibrant team. Lynn Murphy-Dickerscheid and her LMD Hometeam are here to address all of your real estate concerns throughout Greater Cincinnati and surrounding suburbs. Lynn's team consists of herself and daughter Kristi Murphy. Utilizing the latest technologies to vigorously market sellers’ listings and enthusiastically assist buyers, Lynn and her team consistently meet and exceed their goals for satisfying home sellers and buyers. If you are considering buying or selling any type of real estate, please contact Lynn or Kristi today!!