I know there's a lot going on right now with mortgage rates going up and concerns about a recession. It's making some folks wonder if it's still a good idea to buy a home this year. I get it, it's a valid concern. But here's the thing, even though this year has its own set of challenges, it's essential to consider the long-term perks of owning a home before you make your decision.

If you think about it, have you ever met someone who bought a house 5, 10, or even 30 years ago and regretted it? It's pretty rare, right? Well, there's a reason for that. It all boils down to how home values increase over time, which, in turn, helps you build your wealth. And that's probably why a recent survey by Fannie Mae found that a whopping 70% of people believe that buying a home is a smart and secure investment.

Here’s a look at how just the home price appreciation piece can really add up over the years.

Home Price Growth over Time

Take a look at this cool map we have below. It's based on data from the Federal Housing Finance Agency (FHFA), and it shows us some pretty impressive price gains that have happened in the past five years. You know, home prices can be different depending on the area, so we've divided the map into regions to give you a better idea of the overall market trends. Check it out!

If you look at the percent change in home prices, you can see home prices grew on average by just over 56% nationwide over a five-year period.

In some areas, home prices may be a tad higher or lower than the average, but let me tell you, overall, those prices have really shot up in no time. And if you zoom out and look at the big picture, you'll see that owning a home has some serious perks. Homeowners have made some crazy gains over the years, and there's a cool map below to prove it.

The second map shows, nationwide, home prices appreciated by an average of over 290% over a roughly 30-year span.

Did you know that on average, folks who purchased a house around 30 years back have seen their home value nearly triple since then? It's pretty incredible, right? This is one of the main reasons why a lot of homeowners who made that decision years ago are still super satisfied with it.

So, you know how everyone was saying back in late 2022 that home prices were going to take a nosedive? Well, guess what? That never happened. Sure, home prices have calmed down a bit from the crazy high levels we saw during the so-called 'unicorn' years, but guess what else? They're already bouncing back in a lot of places. That means, in most markets, your home is likely to increase in value over the next year. Isn't that great news?

So here's the thing - when it comes to housing, you have two options: buying or renting. Now, let's talk about renting for a moment. Rental prices have been going up and up for years now, and it can feel like you're constantly dealing with those yearly lease hikes. But here's the kicker - what's the long-term financial benefit of all that? None, really.

So, instead of throwing your hard-earned money into the rental abyss, have you considered buying a home? Think about it. When you own a home, you're not at the mercy of a landlord who decides how much you're going to pay each year. Plus, every mortgage payment you make is an investment in your future. It's like building your own little nest egg.

Sure, buying a home might initially require a bit more upfront cash, but think about the long-term gain. It's like having a piece of the real estate pie that appreciates over time. So, if you're tired of dealing with annual lease hikes and want to start building something for yourself, seriously consider buying a home. It could be a game-changer for your financial future.

Bottom Line

If you're currently wondering whether it's still a good time to buy a home, let me remind you about the amazing advantages of homeownership in the long run. It's definitely something worth considering! And if you're ready to dive into this topic further, let's connect today. I'm here to help!