Many questions about the real estate housing market focus on current home prices and where they are trending. To answer these questions, we can turn to the most current Home Price Expectation Survey (HPES).
Quarter 2 - 2019 survey results are as follow:
- Home values are expted to appreciate by 4.1% in 2019
- Over the next 5 years, the average annual appreciation rate is expted to be 3.2%
- By year 2023, the cumulative appreciation will be 16.8%
- Even the most bearish of pundits predict a cumulative appreciation of over 6.7% by 2023.
What Does This Mean?
A significant amount of family wealth is comprised of home equity. As the home's value increases, the home's equity increases as well.
Using predictions from the HPES Survey, here is an example of how the potential equity a family could increase over the next 5 years if they bought a $250,000 earlier this year in January.
Looking at gains on home equity, a family could see their wealth increase by $42,000 over the 5 year period.
If you're not currently a home owner, now may be the perfect time for you to consider purchasing a Fort Lauderdale home or Fort Lauderdale condo. Owning a home or moving up to a better home could allow you to take advantage of the increasing equity in a growing asset. Let's discuss if this is a good option for you.
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