How Rising Prices Will Help You Build Family Wealth in 2018

January 7, 2018

How Rising Prices Will Help You Build Family Wealth in 2018 | MyKCM


Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively,
according to Pulsenomics’ most recent
Home Price Expectation Survey.

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

As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected
increase in the price of that home, how much equity will they earn over the next 5 years?

How Rising Prices Will Help You Build Family Wealth in 2018 | MyKCM


Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $45,000! 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, but 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, find out if you are able to today!