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How Do Rising Prices Impact Your Home Equity? #RealEstate #OrlandoRealEstate #FLRealEstate #FredaRealty

Tuesday, August 16, 2016   /   by Matthew Freda

How Do Rising Prices Impact Your Home Equity? #RealEstate #OrlandoRealEstate #FLRealEstate #FredaRealty

How Do Rising Prices Impact Your Home Equity? | Simplifying The Market

How Do Rising Prices Impact Your Home Equity?






Yesterday, we shared the results of the latest Home Price Expectation Survey by Pulsenomics. One of the big takeaways from the survey is that over the next five years, home prices will appreciate 3.5% per year on average, and cumulatively will grow by around 18%.


So what does this mean for homeowners and their equity position?


For example, let’s assume a young couple purchased and closed on a $250,000 home in January of this year. If we only look at the projected increase in the price of that home, how much equity would they earn over the next 5 years?


How Do Rising Prices Impact Your Home Equity? | Simplifying The Market


Since the experts predict that home prices will increase by 4.5% this year alone, the young homeowners will have gained over $11,000 in equity in just one year.


Over a five-year period, their equity will increase by over $46,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.


Bottom Line


Not only is homeownership something to be proud of, it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, let's meet up to find out if you are able to today!






eXp Realty, LLC
Matthew Freda
651 W Warren Ave
Longwood, FL
407-513-4724

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