How much have home values increased in the past year? Has real estate been a good investment?
If you are in Colorado, your home value has increased by 12.28% (on average).
If you purchased a $400,000 home with 5 percent down, your $20,000 investment has grown to an equity of $49,120. You have more than doubled your money in only one year! (Not cash in hand, but by wealth in real estate.)
$400,000 x 12.28% = $449,120 value
The Federal Housing Finance Agency has released this annual appreciate by state for 2015:
No one can predict what 2016 will bring. The best reason to buy a home is simply because you want to own the space where you live and sleep. You want to stop paying your landlord’s mortgage and pay your own. You want the joy of home ownership! In the meantime, if owning real estate also increases your personal wealth, then that is great, too.
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If you’re buying a home in California or Washington state, I would love to provide you with excellent pricing, no junk fees, and stellar service.
In order to make the best decision, let’s look at where real estate values are headed. They say celebrity opinions make headlines, but let’s skip the sensationalism and see what a panel of 100 economists, investment & marketing strategists, and real estate experts had to say.
SURVEY RESULTS: Where Are Home Prices Headed?
The average annual appreciation will be 3.6% over the next five years. This means the cumulative appreciation will be 19.4% by 2019.
Now consider this: a home valued at $100,000 today will be worth $119,400 by 2019. You can buy a $100,000 home with a down payment of $3,000 to $3,500 (conventional or FHA loan).
So in approximately four years, you turn $3,000 into $19,400 real estate value.
For a $200,000 home, double that.
For a $500,000 home, multiply that by five.
Do I need to explain why I am a fan of buying your own home? Not to mention, the price of rent keeps going up. And, renters don’t qualify for the mortgage tax deduction.
Even the experts making the most bearish experts predicted a cumulative appreciation of 11.8% by 2019.
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