A Look At Home Price Appreciation Through 2025

Home Price Appreciation has increased significantly over the last year, which in turn has grown the net worth of homeowners.

sunny-associates-a-look-at-home-price-appreciation-through-2025
Published: June 25, 2021 | Compliments of Keeping Current Matters

A Look At Home Price Appreciation Through 2025

Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.

In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. Below are the expected year-over-year rates of home price appreciation from the report:

sunny-associates-a-look-at-home-price-appreciation-through-2025-2

What Does This Mean for Homeowners?

Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.

sunny-associates-a-look-at-home-price-appreciation-through-2025-3

Home Price Appreciation and Home Equity

CoreLogic recently released their quarterly Homeowner Equity Insights Report, which tracks the year-over-year increases in equity. It shows an average annual gain of $33,400 per borrower over the past 12 months. In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, further explains:

Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”

The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to sell your current house and move into one that better meets your needs.

Bottom Line

Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you’re a current homeowner who’s ready to take advantage of your built-up equity, contact us today.

sunny-associates-best-realtor-in-boca-raton-fl-joe-jennings-2

Start today by contacting me — I can help!

Hottest Real Estate Market in the World may be Palm Beach, FL, Brokers Say

The average home price in Palm Beach, Florida, was more than $7 million during the third quarter, according to a report from Douglas Elliman and Miller Samuel.

Why Are People Driven To Move In Today’s Real Estate Market

This year, with so many Americans relocating throughout the United States, the pandemic shut down has many reshaping their own outlook on needs and lifestyle choices.

5 “Must Do” Tips To Sell Your Home

Putting your house on the market can be exciting. Here are 5 Must Do Tips that will help you sell your home.

Mortgage Rates After FED Hikes By 0.75% What This Means For Future Rates

As expected, The Federal Reserve announced a rate hike of 0.75%. But don’t think that the FED rate hikes will move mortgage rates higher.

Buying vs Renting Tips & Commonly Asked Questions

Here are some questions that we at Sunny & Associates will ask you in order for you to find out if it’s time for you to finally buy a home.

Choosing A Home In South Florida? What You Need To Know

South Florida is one of the most desirable places to live in the US. With its sunny weather, beautiful beaches, and thriving cultural scene…

Rentvesting: A Possible Real Estate Investment Solution For Millennials

It’s no secret that millennials aren’t buying homes at the same pace as previous generations. Rentvesting: A Possible Real Estate…

What Is Next For The Housing Market, Is It The Right Time To Buy, Sell Or Rent?

In today’s news what we are hearing about the housing market can leave you with more questions than answers. Is the market losing momentum…

Home Inspections: The Do’s And Don’ts And Why We Do Them

You might be tempted to skip the home inspection to save a few hundred dollar but, DON’T SKIP THE INSPECTION and here’s why…

The Key To “Building Wealth Through Real Estate” Is Homeownership

The link between financial security or “Building Wealth Through Real Estate” and homeownership is especially important as inflation rises.

sunny-associates-best-rated-realtor-broker-plantation-fl-joe-jennings-1-b

Top Rated Real Estate Broker

Real Estate Markets: Plantation, Davie, Cooper City, Pembroke Pines, Weston, Sunrise, Fort Lauderdale, Boca Raton, Port St. Lucie, Vero Beach and Tallahassee Florida.