Yesterday the FHFA (Federal Housing Finance Agency) announced that year over year home appreciation was up 5.6%. So where does this 8,400 number come into play, you ask?
Let’s say that one year ago from today you purchased a home for $150,000. Based on FHFA’s estimated year-over-year home appreciation rate of 5.6 percent, your home would be worth an estimated $158,400 today. This equates to $8,400 in wealth gained in a matter of 52 weeks, which is not a bad return on your investment by any standard.
It should be pointed out that appreciation rates can vary greatly depending on the area you’re in. As such you should consult with your local real estate professional to get a better idea of the estimated home appreciation rates in your area.
That being said, the home appreciation rate as provided by the FHFA is a strong indicator that now is a great time to invest in real estate. Given today’s historically low rates and the extreme volatility currently being seen in the stock market, all signs point to the fact that there may never be a more opportune time buy a home than the present.
As previously mentioned, it is always a good idea to discuss the local market conditions and trends in your area with a real estate professional. To discuss the financing options available to you in today’s market get with a qualified mortgage professional.
Thanks for reading!