Homeownership – You Can Build Your Case For That Today!

The average sale price of homes has appreciated at a rate of 5.56% annually over the last 60 years, according to the Federal Reserve Economic Data. During that same period, rent has increased at a rate of 3.88% annually which presents quite the compelling argument in favor of homeownership.

Once you sit down and study the figures, it’s very evident that homes have not only appreciated in value at a faster rate than the increase in rental costs, but they have also provided homeowners hedge against inflation and a substantial asset that builds equity over time.

You’ll notice later in this blog that there is a link to the report called “Building a Case for Homeownership Today!”. I highly encourage you to download that free report. In that report, you as a reader will discover the real cost of homeownership is most likely less than you are paying in rent because of the two powerful dynamics of amortization and appreciation that are not currently working in your favor.  As you continue to rent, the dynamics work in favor of your landlord.

The median homeowner has a net worth of $396,000 compared to approximately $10,400 for renters making the net worth of a homeowner 38 times the household wealth of a renter according to the latest data from the Federal Reserve Board Survey of Consumer Finance.

Another powerful comparison shows what is happening to the postponed buyer’s funds for down payment during the delay in purchasing.  Even when the funds are invested in a certificate of deposit or in stocks, the increased proceeds are no where near what their equity would be had they been invested in a home.

Another revelation in this report puts mortgage rates in perspective.  Instead of the anomaly the market has seen for the past 10 years and even more so, in the past three years, the average fixed-rate mortgage rate for the past 52 years is 7.74%; less than the current 30-year fixed-rate mortgage rate.

The report also explains how homeowners can access their home’s equity for a variety of purposes like education, medical expenses, investment, business opportunities, or other causes.

In conclusion, the case for homeownership today extends far beyond the emotional and social dimensions—it’s a solid financial decision. While high interest rates, affordability concerns, and soaring home prices may seem daunting, it’s essential to recognize that the current environment still favors homebuyers.

Download the Building a Case for Homeownership Today! report either for yourself or for someone you know.  After looking at it, schedule an appointment with me to look at the specifics of your situation and give you the information you need.

Ready to make a decision? Have questions about today’s market? I can provide Insider Information on Fairfax VA homes for sale. Get you a FREE Market Snapshot Report of Your Northern Virginia Home’s Value, or  Search All Northern Virginia Homes For Sale. Put that data you need at the tips of your fingers!

Leave a Reply

Your email address will not be published.