Why Homeownership Wins In the Long Run
With Today’s high mortgage rates and low inventory, many people are wondering “should I still buy a home this year?” While 2023 has proven to be a challenging year for homebuyers, it is important to consider the long-term benefits of homeownership when making your decisions.
Think about it this way: if you know someone who bought a home between five and thirty years ago, chances are high that they do not regret their decision. The reason why is tied to how home values grow over time and how that in turn grows your own wealth. In a recent Fannie May survey, about 70% of respondents said that they believe owning a home is a safe investment.
Here’s a look into how the home price appreciation can add up over time.
Home Price Growth Over Time
The map below incorporates data from the Federal Housing Finance Agency to display how price gains have been increasing over the past 5 years. Plus, since home prices vary by area, the map is broken out regionally to help convey the overall market trends.
Overall, home prices grew on average about 56.1% nationwide over a five-year period. For the South Atlantic region, which includes Florida, the average price grew by 67.5%
Throughout the United States, home prices gained solid ground in a short time. Furthermore, if you expand that time frame even more, the benefit of homeownership really comes into view:
In about 30 years, home prices appreciated by an average of 290.2% nationwide. Again, the South Atlantic region grew even more than that, at 320.4%.
So what this means is that homeowners who bought their houses 30 years ago saw their home almost triple in value over that time frame. This goes to show just how beneficial it is to own a home in Southwest Florida, and is a key reason why homeowners rarely regret their homebuying decisions.
While you may have heard the rumors spreading in late 2022 that home prices would crash, that crash never happened. Even though home prices are down from the record peak we saw during the ‘Unicorn’ Years, prices are already rebounding in many regions. This means, that in most markets, your home should grow in value over the next few years.
Keep in mind that the alternative to buying a home is renting, and rental prices have been steadily climbing for decades. So why waste money paying someone else for your home while dealing with annual lease hikes and no long-term benefits? Buying a home is truly the best option.
If you are still questioning whether or not you are ready to buy a home today, keep in mind all of the incredible long-term benefits that homeownership grants you. Contact Dianne Anderson today to learn more about the specifics of the Southwest Florida market and how we can make your dream of homeownership a reality.