If you’re thinking about buying a home soon, higher mortgage rates, rising home prices and ongoing affordability concerns may make you wonder if it still makes sense to buy a home right now. While those market factors are important, there’s more to consider. You should think about the long-term benefits of homeownership too.
Think about this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? Home values grow with time. That grows your own wealth. In a recent Fannie Mae survey, 76% of respondents say they believe buying a home is a safe investment.
Home Price Growth Over Time
If you look at the percent change in home prices, you can see home prices grew on average by just over 57% nationwide over a five-year period.
Some regions are slightly above or below that average, but overall, home prices gained solid ground in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer.
A homeowner who bought a house 30 years ago, saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision. Experts project home prices will continue to rise for years to come.
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