Home values continue to show steady growth across the country. ICE, or Intercontinental Exchange, who provide real-time market data, released their latest Home Price Index, and it showed that home values nationwide increased 0.21% in August and are up 1.71% from a year ago. That marks the strongest annual growth rate in 14 months.
Looking at the past six months of data, home prices are currently on pace for roughly 3% annual appreciation.
While 3% annual appreciation may not sound like much, it can add up significantly over time. For example, a $500,000 home appreciating at 3% per year would gain approximately $15,000 in the first year, $80,000 over five years, and $171,000 over 10 years.
With mortgage rates remaining a major concern for many buyers, it’s important to look beyond today’s rate and consider the long-term opportunity of homeownership. Steady appreciation can play a meaningful role in building wealth and creating financial security over time.
Source : MBS Highway