Have you ever wondered about the long-term benefits of owning a home? As a buyer in today’s market, you may be feeling a little uneasy with the rising mortgage rates and economic conditions, but it is also important to consider the long-term benefit of homeownership when making your decision to buy.
If you were speak to someone who has been in their home for a lengthy period, it’s unlikely that they regret their decision to buy a home due to the equity they have built over the years. Home Equity is one of the biggest advantages of owning a home today.
According to the National Association of Realtors, “Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments” and although we are seeing the market shift, homes are continuing to appreciate at moderate levels. Experts are predicting home prices will still continue to appreciate nationally in 2023. And if you are planning to remain in your home for a length of time, you should see growth year after year.
This is a long term investment benefit that will increase your net worth and set you up for long term financial gains.
According to Odeta Kushi, Deputy chief economist for First American, “Homeowners nationally had an average of $320,000 in inflation adjusted equity in their homes in the second quarter of 2022, an all time high”. AND for some homeowners, home equity is the only source of creating more wealth.
Start Your Path Towards Building Wealth Today
So the bottom line is, if you are in a position to buy, do not let current conditions sway you from achieving your home ownership dreams. You need to consider the long term investment for your future.
If you have questions about the buying or selling process in Northwest Arkansas, please connect with our team of local experts.