Home is said to be where the heart is.
It’s also where you’ll be allocating a large portion of your finances. Homeownership is a cornerstone of the American dream, and while many younger generations may not be able to afford it or consciously choose not to seek it, those who do reap significant financial rewards because of the historical appreciation of real estate.
Let’s take one recent example: When the pandemic hit last spring, CoreLogic predicted that we’d be in a housing slump by April 2021, with prices increasing just 1%. The forecast was not only incorrect, but it was also far off the mark. During the COVID-19 recession, the housing market exploded as investors took advantage of historically low interest rates. The average sales price of existing homes has risen over 15% in the last year, from roughly $270,400 to $313,000.
Reviewing the Appreciation of Real Estate
According to a recent survey, home prices in the United States have risen by approximately 49% in the last 10 years. According to a recent report, U.S. homes will average $382,000 by 2030 if they continue to rise at similar rates over the next decade.
The study compared the average price in each state and the 50 largest cities from September 2010 to September 2020 to forecast property prices in 2030.
Home prices in California, Nevada and Colorado have nearly doubled since 2010, jumping over 100%.
The study also forecasted home prices in each state in 2030. Over the next decade, California is expected to have the highest rates. According to the report, the average home price could reach $1 million if prices continue to rise at their current rates.
The top 10 states predicted to have the highest prices are:
- California
- Hawaii
- Washington
- Colorado
- Utah
- Nevada
- Oregon
- Idaho
- Massachusetts
- Arizona
If you are a homeowner then you are likely sitting on a lot of equity. That equity can be utilized in a variety of ways. One of those ways is to sell your home for a profit and purchase a larger home. There are many homeowners doing that now, and if you are interested in selling or refinancing, I can walk you through the loan process. Likewise, this should be a good example of how becoming a first-time homebuyer can be a wise investment.
I would be honored to assist you. Let’s team up to help you reach your financial goals.
Email me at [email protected], or give me a call at 916.880.8059.