What Does This Mean for You?
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home’s value could change in the next few years using the expert projections from the HPES, check out the graph below: $71,363 Potential growth in household wealth over the next 5 years based solely on increased home equity if you purchased a $400K home in January 2023
$471,363
$452,451
$435,929
Pre- Bubble
Bubble
$422,248
$413,280
$400,000
Bust
Based on price appreciation projected by the HPES
2023
2024
2025
2026
2027
2028
Source: HPES
In this example, let’s say you bought a $400,000 home at the beginning of 2023. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years. So, if you’re thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run.
Bottom Line
According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today.
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