Working on your holiday shopping?
Get our gift guide
Do you want content like this delivered to your inbox?
Share

Want to Build Wealth? Buy a Home This Year.

Share

Want to Build Wealth? Buy a Home This Year.

Andy Rose

Andy brings to the table over 12 years of real estate experience including becoming a licensed Georgia broker in 2018 and a licensed Broker in Fl...

Andy brings to the table over 12 years of real estate experience including becoming a licensed Georgia broker in 2018 and a licensed Broker in Fl...

Feb 2 5 minutes read

Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most of the country.

There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home.

Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:


“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”


What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:

Want to Build Wealth? Buy a Home This Year. | MyKCM

The typical gain in the sale of the home (equity) has increased significantly over the last five years.

CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.

What does the future look like for homeowners when it comes to equity?

Here are the seven major home price appreciation forecasts for 2021:Want to Build Wealth? Buy a Home This Year. | MyKCM

The National Association of Realtors (NAR) just reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.

Bottom Line

As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting. When you do, you may find this is the perfect time to jump into homeownership.

Get your home's accurate value.

Instead of a robot and an algorithm, we use our experience and up-to-date MLS data*

  • Step 1
  • Step 2
First Name
Last Name
Email
Phone
Best time to call

We'll be in touch soon!

Our goal is to send your report over within 24-48 hours. In the meantime, hear from our past sellers about their experiences.

Andy sold it quickly after it sat with another agent!

Our home had been on the market for 4 months with a previous agent. My husband found Andy on a real estate group. Andy was very knowledgeable in my area. He suggested making a few minor updates and listed our house for $30k more than it was previously listed for. It took Andy about 2 weeks after listing it to get 2 offers on my house. We finally closed on our house after an offer of only $5K off of ask.

Verified by RateMyAgent

Now partnered with Corcoran

Fidelis South is now partnered with Corcoran Reverie in Florida. 

Corcoran Reverie is known for their knowledge and experience with luxury beach properties along Florida's panhandle.

We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info