WEST CHESTER, PA – BUILD FAMILY WEALTH THROUGH HOME OWNERSHIP

WEST CHESTER, PA – BUILD FAMILY WEALTH THROUGH HOME OWNERSHIP

Here are the main factors that make residential real estate the most important investment most people ever make.  We will explore every one in this article

  • Home values have been steadily increasing over the past 60 years, providing an opportunity for homeowners to build equity.
  • Rent prices are consistently rising, making homeownership a more appealing option than renting.
  • Home prices have seen dramatic increases and slight declines in the past year but are now appreciating at a more normal pace.
  • Low inventory of homes on the market is leading to fewer choices for buyers and resulting in faster sales, multiple offers, and potentially higher sale prices for sellers.
HOME VALUES HAVE BEEN STEADILY INCREASING OVER THE PAST 60 YEARS

Homeownership is a powerful wealth-building tool, offering several significant financial advantages. Firstly, as a homeowner, you enjoy potential capital gains as your property value appreciates over time. This can significantly contribute to your net worth. Secondly, monthly mortgage payments often replace rent, and these payments can act as a form of forced savings as you gradually own more of your property. This contributes to building equity that can be leveraged in the future for financial needs. Lastly, homeownership comes with tax benefits, such as the potential to deduct mortgage interest and property tax payments. These factors combine to make homeownership a financially savvy move.

Check out this graph for the long term trend.  The only downtrend was in the 2008-2013 time frame when the federal government mandated that sub prime mortgages be granted to people who had poor credit.

Over the long term, homeownership can prove to be a highly beneficial financial strategy. One advantage is the potential for substantial appreciation in property value, a trend that has been consistent throughout history. This not only contributes to overall wealth, but also offers opportunities for refinancing or drawing on home equity in times of need. Furthermore, the fixed-rate mortgage payments act as a hedge against inflation, keeping housing costs stable while rents may increase over time. Lastly, owning a home can also be a part of a well-rounded retirement plan. Once the mortgage is fully paid off, housing costs are significantly reduced, and the home can even be sold as a part of a downsizing strategy, potentially adding a significant sum to your retirement nest egg. In essence, homeownership can be a powerful tool for financial planning and long-term wealth generation.

For an actual example, consider the below chart which shows actual wealth buildup if a person bought a median priced house in West Chester in 2014 and held it until 2023.

MEDIAN SALES PRICE, WEST CHESTER AREA, SINGLE FAMILY
Primary Year Sale Price, Median Annual % Change Cumulative % Change Equity Buildup.
2014 $415,000
2015 $417,500 0.6% 0.6% $2,500
2016 $423,500 1.4% 2.0% $8,500
2017 $441,000 4.1% 6.3% $26,000
2018 $469,900 6.6% 13.2% $54,900
2019 $480,000 2.1% 15.7% $65,000
2020 $510,000 6.3% 22.9% $95,000
2021 $580,000 13.7% 39.8% $165,000
2022 $640,000 10.3% 54.2% $225,000
2023 $693,000 8.3% 67.0% $278,000
West Chester, Downingtown and Great Valley School Districts
All Positive Years since 2014
Trend Expected to Continue
Assume 10% Down in 2014, Mortgage Amount = $373,500
Interest Rate = 7%
% of Principal Remaning After 9 Years 88%
Amount Remaining After 9 Years $329,147
Principal Reduction $44,353
Total Equity (Net Worth) Increase $322,353

As you can see, the wealth improvement of $322,353 in this example is composed of the value increase of the home  ($278,000), plus the reduction in the remaining mortage balance ($44,353).

RENT PRICES ARE CONSISTENTLY RISING MAKING HOMEOWNERSHIP  MORE APPEALING

In comparison to homeownership, renting offers its own unique set of benefits and drawbacks. From a financial perspective, renters often have lower monthly costs and aren’t responsible for maintenance or repair expenses, providing greater budget flexibility. Renting also offers more geographical mobility for those who aren’t locked into a long-term location due to career or lifestyle. On the downside, renters don’t accumulate equity and don’t enjoy the potential capital appreciation that homeowners do. They are also subject to annual rent increases and have less control over their living space.

Consider this graph of rent increases over time.

In contrast, homeownership provides a long-term investment and opportunity to build equity. However, it also involves higher upfront costs, ongoing maintenance responsibilities, and less flexibility to move. In essence, the decision between renting and homeownership largely depends on individual financial circumstances, lifestyle preferences, and long-term goals. But if you can swing it, owning your own home has humungous financial benefts (in this case $322,353) as opposed to renting which has a financial benefit of absolute ZERO!!!!!

And the basic question is this. To whose wealth do you want to contribute? Yours or your landlord ? I think know which one you should pick.

HOME PRICES HAVE SEEN DRAMATIC INCREASES AND SLIGHT DECLINES IN THE PAST YEAR, BUT ARE NOW APPRECIATING AT A MORE NORMAL PACE

The current surge in home prices is largely attributed to a dynamic interplay of supply and demand factors. On the supply side, there’s a noticeable shortage of homes available for sale. Furthermore, the demographic shift characterized by millennials entering their prime home-buying years has fueled demand. Additionally, the ongoing pandemic has underscored the value of homeownership, leading more people to aspire for their own space. These factors combined create a sellers’ market where the demand for houses outstrips supply, causing a surge in home prices.

LOW INVENTORY OF HOMES MEANS FEWER CHOICES FOR BUYERS AND HIGHER PRICES FOR SELLERS

In a low inventory market, selling your property can be a strategic move, especially if you’re considering moving to a higher-priced home. Firstly, you’re likely to sell your current home at a competitive price due to high demand and low supply. Consider the below graph which shows supply of homes for sale.

Secondly, while prices for higher-end homes may also be inflated, typically, the rate of price appreciation is slower for more expensive homes. This disparity in price growth rates between lower and higher-priced properties means that the ‘price gap’ between your current home and your next, more expensive home could be narrowing. Thus, upgrading to a more expensive home in a low inventory, high demand market might not be as financially demanding as it would be in a balanced market.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move. I would like to become that real estate expert upon whom you can lean.
  • Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is changing, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor. Again we can do that in person or on the computer.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are clear opportunities for sellers right now. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect on Zoom, in person or on the phone at 484 574 4088.

 

WEST CHESTER, PA, HOW TO SELL YOUR HOUSE FOR THE MOST MONEY

Sell Your House for the Most Money in West Chester

Selling a house is an important financial decision that requires careful planning to ensure you get the best possible price. Here are a few key strategies to help you maximize your return:

Choice of the Best Realtor for You

Choosing the right realtor is perhaps the most critical factor in the success of your real estate journey. The ideal realtor not only has a deep understanding of the market conditions, but also possesses excellent negotiation skills, the best marketing program you have seen and a dedication to achieving your unique real estate goals. It is essential to select a realtor who is reliable, communicative, and exhibits a high level of professionalism. I always recommend that you interview at least two and preferably three or four realtors to decide on who is best for you. Most important is to understand  their marketing strategies. Make sure you check out their past customer testimonials.  Ultimately, the best realtor for you should be someone you trust and feel comfortable with, as this is the person who will guide you through one of the most significant transactions of your life.

Preparing Your Home for Sale

First impressions matter a lot. Before you list your house, ensure it’s in its best possible condition. It may involve decluttering, painting, minor repairs, or even professional staging. A well-presented home can command a higher asking price.  Once yoiu select your realtor, he or she will be your best resource for how to prepare your house to get the most money.

Houses Sell Fast; Why Not Do it Myself?

In a booming real estate market, you may wonder why you should hire a realtor when houses seem to sell quickly on their own. While it’s true that some homes sell rapidly, navigating the complex world of real estate without professional guidance can still present significant challenges. A realtor’s role extends beyond just finding a buyer. They handle the intricate details of contracts, inspections, and negotiations, ensuring that your interests are protected throughout the process. They also have access to a wide network of potential buyers and sellers, which can significantly widen your options. Most importantly, they leverage their market knowledge to help you get the best price for your property. It’s not just about selling your house quickly; it’s about selling it in the right way, at the right price, and with the least amount of stress. A professional realtor can offer immeasurable value in ensuring all these factors are meticulously managed.

In a market like we have today where houses sell very fast, it is always tempting to think about doing it yourself. Actual statistics over the last several decades show that hiring a good realtor will return about 6 to 10% more money to you at settlement. And with a lot less stress and worry on your part.

The Importance of Home Staging

Home staging is a powerful tool in the selling process. It goes beyond simple decluttering and cleaning, transforming your home into a place that potential buyers can easily envision living in. A well-staged home projects an inviting picture, helping buyers to emotionally connect with the space. It also shows your property in its best light, emphasizing its strengths and downplaying any weaknesses. Therefore, investing in professional staging, as advised by your realtor can significantly enhance the appeal of your home and ultimately, the return on your investment.

Professional Photography and virtual tours

This is the visible bait, well presented on line that gets people interested in your house and asking to see it. This is something that should be included right at the top of your realtor’s marketing program. This should be at the center of your realtor’s marketing program, included AT NO EXTRA COST TO YOU.  Investing in professional real estate photography  and virtual tours are thetwo  most important steps when selling your home. High-quality, well-composed images can significantly impact a buyer’s first impression of the property, often piquing their interest before they’ve read a single word about the home. A professional photographer knows how to capture the best aspects of a property, highlighting its features in a way that showcases its full potential. They also understand the importance of lighting and angles in creating appealing and realistic images. In today’s digital age, where most property searches begin online, compelling photographs can make your listing stand out from the crowd and attract more potential buyers. Therefore, professional photography is not just a luxury, but a necessary investment to ensure your home is presented at its absolute best.

In the era of digital advancements, virtual tours have become a pivotal element in the real estate market.  They give you a virtual open house, on line 24/7. They provide potential buyers with the opportunity to explore the property at their own pace and convenience, without the need for physical presence. Virtual tours offer a 360-degree view of the home, enabling buyers to visualize the space more accurately. They highlight the unique features and layout of the home, offering a perspective that static images cannot capture. Furthermore, they are an excellent tool for long-distance buyers or those with busy schedules, making property viewing more accessible and efficient. Thus, integrating virtual tours into your listing can significantly enhance the reach and appeal of your property, making it more enticing to a wider audience. For example, I have been told that many buyers on Realtor.com will only look at homes with virtual tours.

Market Your Home Effectively

Professional photography and a virtual tour with exposure on literally hundreds of real estate web sites are key to getting  your house sold quickly and for the most money. At Keller Williams, we have agreements with over 300 individual real estate web sites to give your house the most exposure available.

Check Out the Realtor’s Web Site

In today’s digitally driven world, having a strong online presence is not just beneficial, it’s essential. For a realtor, a well-designed, user-friendly website serves as a digital storefront, providing prospective buyers and sellers with easy access to listings, insights, and contacts. Through the website, a realtor can showcase their expertise and services, building credibility and trust with potential clients. Additionally, a strong online presence extends beyond the website to social media platforms. By regularly posting engaging and relevant content, realtors can connect with a wider audience, drive increased traffic to their website, and generate more leads. Furthermore, a consistent online presence allows realtors to stay top of mind among potential clients and positions them as a go-to resource for all real estate needs. Hence, the importance of an online presence in real estate cannot be overstated.

Check Out the Realtor’s Customer Testimonials

Customer testimonials play an invaluable role in shaping a potential client’s perception and decision. Prior clients’ experiences shed light on the realtor’s professionalism, competence, and commitment. As such, examining the customer testimonials on the realtor’s website is a highly recommended step. Look for recurring themes in the testimonials – responsiveness, negotiation skills, market knowledge, etc., which can provide a holistic view of the realtor’s strengths and credibility. Remember, genuine and positive customer testimonials can serve as a powerful endorsement for the realtor, instilling confidence in their service and capabilities. Therefore, make it a point to review these testimonials before making your decision.

Set the Right Price

Setting the right price for your home is a critical step. It is always advisable to “Price Ahead of the Market”, whether we are in a Sellers’ Market (Prices going Up) or a Buyers’ Market (Prices Going Down).  Right now we are in a Sellers’ Market so my general advice is almost always to price your house a bit higher than recent comparable sales. Bottom line, I feel that to get the best price, the first step is to ask for the best price.

Realtor as Your Negotiator

A competent realtor is not only your guide but also your advocate, adept at negotiation to ensure you get the best possible deal. They have the skills and experience to analyze comparable sales, inspect property condition reports, and understand market trends, which allows them to accurately assess the true value of a property. Armed with this knowledge, your realtor can effectively negotiate on your behalf, arguing for terms that align with your interests. Whether you are a buyer seeking the lowest price or a seller aiming for the highest, your realtor’s negotiation skills will be instrumental in maximizing your financial advantage. What I have learned in my 22 years in the business and 180 transactions plus 35 years in the corporate world is good evidence that I can represent you very intelligently.

Once you have a potential buyer, negotiation comes into play. It’s important to remain patient and flexible during this process. Keep your bottom line in mind and make sure that your realtor unerstands the advantages that are on the sellers’ side in a strong sellers’ market like we have today.

Remember, selling a house is a significant undertaking, but with the right realtor who will guide you in a carefully planned, strategically priced, and effectively marketed series of steps, \ you can ensure you get the best possible return on your investment.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move. I would like to become that real estate expert upon whom you can lean.
  • Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is changing, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor. Again we can do that in person or on the computer.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers right now. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.

 

MEDIA, PA AREA – WHY OWNING A HOME IS A SMART INVESTMENT

MEDIA, PA AREA – WHY OWNING A HOME IS A SMART INVESTMENT

As the world comes out of the COVID-19 pandemic, many people are looking to invest their money in ways that are safe and secure. One investment that experts predict will see positive growth is homeownership. In this blog post, we’ll explore why owning a home is a smart investment in 2023, and we’ll look at some of the key factors driving positive growth in home prices. We’ll also examine the benefits of owning a home, including the potential for appreciation and long-term equity growth, tax benefits, and more. Finally, we’ll offer some practical tips for successful homeownership and explain how growing home equity can positively affect your net worth.

Key Factors Driving Positive Growth in Home Prices

The housing market is constantly fluctuating, and this year has been no exception. Earlier forecasts predicted that prices would remain stagnant or even fall, but recent data from six organizations and a survey of 100 economists, investment strategists, and housing market analysts suggest otherwise. The results indicate that prices will see a positive growth of around 3.3%. It just proves that sometimes, even the experts’ predictions can be wrong. The good news is that the market is expected to remain steady and even outperform previous expectations. So, whether you’re a buyer, seller or just interested in the housing market, it’s always good to keep an eye on the trends and be prepared for any changes that might come your way.

Why Is This So? Two Reasons:

  • There are few homes for sale and
  • There are more buyers than sellers which means that homes will sell in about a week if they are properly marketed and priced.

Benefits of Owning a Home

Owning a home isn’t just about having somewhere to live. It also offers significant financial benefits. For example, you can deduct your mortgage interest and property taxes from your federal income taxes, resulting in significant savings. Additionally, owning a home offers the potential for appreciation and long-term equity growth. In other words, as your home increases in value over time, your net worth will increase as well. Owning a home also provides a sense of security and stability, as you have control over your living space and don’t have to worry about a landlord raising your rent or asking you to move out.

How Home Equity Affects Net Worth

Home equity is the difference between the current market value of your home and the amount you owe on your mortgage. As you pay down your mortgage and your home increases in value, your home equity increases as well. This can positively affect your net worth, which is the total value of your assets (including your home) minus your liabilities (such as your mortgage and other debts). For example, if your home increases in value by $50,000 over five years, and you pay off $20,000 of your mortgage during that time, your net worth will have increased by $70,000. As you can see, growing your home equity is an excellent way to increase your net worth over time.

For real live examples, check out this chart of median sales prices in the Media area:

MEDIAN SALES PRICE, MEDIA AREA, SINGLE FAMILY
Primary Year Sale Price, Median Annual % Change Cumulative % Change Equity Buildup.
2014 $429,900
2015 $438,500 2.0% 2.0% $8,600
2016 $460,000 4.9% 7.0% $30,100
2017 $475,000 3.3% 10.5% $45,100
2018 $489,900 3.1% 14.0% $60,000
2019 $510,000 4.1% 18.6% $80,100
2020 $540,000 5.9% 25.6% $110,100
2021 $634,500 17.5% 47.6% $204,600
2022 $685,000 8.0% 59.3% $255,100
2023 $705,000 2.9% 64.0% $275,100
Wallingford Swarthmore, Rose Tree Media, Radnor, Garnet Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

In nine years after buying the median priced house in the Media area, the equity build up from value increases alone is $275,100.

And that performance is also very safe. I also see this trend continuing over time.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move. I would like to become that real estate expert upon whom you can lean.
  • Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is changing, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor. Again we can do that in person or on the computer.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers right now. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect

WEST CHESTER, PA – WHY OWNING A HOME IS A SMART INVESTMENT

WEST CHESTER, PA – WHY OWNING A HOME IS A SMART INVESTMENT

As the world comes out of the COVID-19 pandemic, many people are looking to invest their money in ways that are safe and secure. One investment that experts predict will see positive growth is homeownership. In this blog post, we’ll explore why owning a home is a smart investment in 2023, and we’ll look at some of the key factors driving positive growth in home prices. We’ll also examine the benefits of owning a home, including the potential for appreciation and long-term equity growth, tax benefits, and more. Finally, we’ll offer some practical tips for successful homeownership and explain how growing home equity can positively affect your net worth.

Key Factors Driving Positive Growth in Home Prices

The housing market is constantly fluctuating, and this year has been no exception. Earlier forecasts predicted that prices would remain stagnant or even fall, but recent data from six organizations and a survey of 100 economists, investment strategists, and housing market analysts suggest otherwise. The results indicate that prices will see a positive growth of around 3.3%. It just proves that sometimes, even the experts’ predictions can be wrong. The good news is that the market is expected to remain steady and even outperform previous expectations. So, whether you’re a buyer, seller or just interested in the housing market, it’s always good to keep an eye on the trends and be prepared for any changes that might come your way.

Why Is This So? Two Reasons:

  • There are few homes for sale and
  • There are more buyers than sellers which means that homes will sell in about a week if they are properly marketed and priced.

Benefits of Owning a Home

Owning a home isn’t just about having somewhere to live. It also offers significant financial benefits. For example, you can deduct your mortgage interest and property taxes from your federal income taxes, resulting in significant savings. Additionally, owning a home offers the potential for appreciation and long-term equity growth. In other words, as your home increases in value over time, your net worth will increase as well. Owning a home also provides a sense of security and stability, as you have control over your living space and don’t have to worry about a landlord raising your rent or asking you to move out.

How Home Equity Affects Net Worth

Home equity is the difference between the current market value of your home and the amount you owe on your mortgage. As you pay down your mortgage and your home increases in value, your home equity increases as well. This can positively affect your net worth, which is the total value of your assets (including your home) minus your liabilities (such as your mortgage and other debts). For example, if your home increases in value by $50,000 over five years, and you pay off $20,000 of your mortgage during that time, your net worth will have increased by $70,000. As you can see, growing your home equity is an excellent way to increase your net worth over time.

For real live examples, check out this chart of median sales prices in the West Chester area:

MEDIAN SALES PRICE, WEST CHESTER AREA, SINGLE FAMILY
Primary Year Sale Price, Median Annual % Change Cumulative % Change Equity Buildup.
2014 $415,000
2015 $417,500 0.6% 0.6% $2,500
2016 $423,500 1.4% 2.0% $8,500
2017 $441,000 4.1% 6.3% $26,000
2018 $469,900 6.6% 13.2% $54,900
2019 $480,000 2.1% 15.7% $65,000
2020 $510,000 6.3% 22.9% $95,000
2021 $580,000 13.7% 39.8% $165,000
2022 $640,000 10.3% 54.2% $225,000
2023 $693,000 8.3% 67.0% $278,000
West Chester, Downingtown and Great Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

In nine years after buying the median priced house in the West Chester area, the equity build up from value increases alone is $278,000.

And that performance is also very safe. I also see this trend continuing over time.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move. I would like to become that real estate expert upon whom you can lean.
  • Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is changing, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor. Again we can do that in person or on the computer.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers right now. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.

 

OWN YOUR HOME IN THE MEDIA AREA, MAKE LOTS OF MONEY

Call to Action, if you would like to discuss, just call or text to 484 574 4088 or email to john@johnherreid.com.

• Homeownership has yielded substantial long-term benefits over the last five and 30 year periods, with nationwide averages of 57% and 297% price growth, respectively.

• Recent forecasts projecting home prices to crash in 2023 proved false, as prices experienced only slight declines before rebounding quickly.

• Experts project that home prices will continue to rise for years to come.

• Homeowners who purchased property 30+ years ago are still reaping the benefits of their decision.

Long-term benefits of homeownership extend beyond mere financial gains. For instance, homeowners often experience an increased sense of stability and security, as they are free from the unpredictable conditions of the rental market. They have control over their living environment, with the freedom to renovate or make changes to their property as they see fit. Homes often become long-term investments that can be passed down to future generations, fostering a sense of family heritage and continuity. Lastly, homeownership often triggers community involvement, as homeowners are more likely to invest time and effort into their neighborhood, enhancing the communal experience for everyone.

For a snapshot of building your wealth in the Media, Delaware County area, consider the below chart of median sales price of single family homes starting in 2014:

MEDIAN SALES PRICE, MEDIA AREA, SINGLE FAMILY
Primary Year Sale Price, Median Annual % Change Cumulative % Change Equity Buildup.
2014 $429,900
2015 $438,500 2.0% 2.0% $8,600
2016 $460,000 4.9% 7.0% $30,100
2017 $475,000 3.3% 10.5% $45,100
2018 $489,900 3.1% 14.0% $60,000
2019 $510,000 4.1% 18.6% $80,100
2020 $540,000 5.9% 25.6% $110,100
2021 $634,500 17.5% 47.6% $204,600
2022 $685,000 8.0% 59.3% $255,100
2023 $705,000 2.9% 64.0% $275,100
Wallingford Swarthmore, Rose Tree Media, Radnor, Garnet Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

Bottom line, just the growth in home value increases family wealth by 64%.  Adding to this would be the impact of reducing the outstanding balance on the mortgage. That would come to about $50,000 at a 7% interest rate after 9 years.

Homeownership is not just an economic decision; it also taps into the emotional spectrum of humans. It provides a sense of belonging and autonomy, contributing significantly to one’s emotional wellbeing. Owning a home serves as a source of pride and accomplishment, boosting self-esteem. This emotional connection is further deepened when homeowners transform their property into a personal sanctuary, reflecting their taste, lifestyle, and experiences. The freedom to decorate and rearrange without limitations conveys a sense of control, enhancing emotional stability. Moreover, homeownership often cultivates invaluable relationships with neighbors, enriching social and emotional life. In essence, a house is not merely a physical structure, but an emotional hub imbued with memories, warmth, and a sense of identity.

From a financial perspective, homeownership can be perceived as a robust investment strategy offering both short-term and long-term benefits. In the short-term, homeowners may enjoy tax benefits, as mortgage interest and property tax payments are often tax-deductible. Additionally, a fixed-rate mortgage ensures predictable monthly housing costs, providing homeowners with financial certainty compared to renters who may face unexpected rent increases.

As you can see from the above, in the long-term, homeownership can lead to significant wealth accumulation. As homeowners make mortgage payments over time, they build equity in their homes—a valuable asset that can be used to secure future credit or fund significant expenses. Moreover, homes generally appreciate in value over time, potentially yielding substantial returns when the property is sold. It’s crucial to remember that while homeownership has the potential for significant financial rewards, it also comes with financial responsibilities such as maintenance costs and property taxes. Hence, a well-informed, balanced approach to homeownership is essential to optimize its impact on personal finances.

Homeownership significantly contributes to economic growth and stability. It stimulates demand for goods and services as homeowners usually invest in home improvements and regular maintenance, thereby creating job opportunities in construction, retail, and other related industries. A robust housing market can also lead to increased property tax revenues for local governments, which can be reinvested into community development. Additionally, the ability to borrow against home equity can spur consumer spending, driving economic expansion. Furthermore, homeownership fosters a sense of stability and community cohesion, which can lead to improved neighborhood conditions and increased property values, benefiting both individuals and the broader economy.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move. I would like to become that real estate expert upon whom you can lean.
  • Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is changing, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor. Again we can do that in person or on the computer.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers right now. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.

OWN YOUR HOME IN WESTCHESTER AREA, MAKE LOTS OF MONEY

Call to Action – if you would like to chat about what is right for you, just call or text to 484 574 4088 or email to john@johnherreid.com

• Homeownership has yielded substantial long-term benefits over the last five and 30 year periods, with nationwide averages of 57% and 297% price growth, respectively.

• Recent forecasts projecting home prices to crash in 2023 proved false, as prices experienced only slight declines before rebounding quickly.

• Experts project that home prices will continue to rise for years to come.

• Homeowners who purchased property 30+ years ago are still reaping the benefits of their decision.

Long-term benefits of homeownership extend beyond mere financial gains. For instance, homeowners often experience an increased sense of stability and security, as they are free from the unpredictable conditions of the rental market. They have control over their living environment, with the freedom to renovate or make changes to their property as they see fit. Homes often become long-term investments that can be passed down to future generations, fostering a sense of family heritage and continuity. Lastly, homeownership often triggers community involvement, as homeowners are more likely to invest time and effort into their neighborhood, enhancing the communal experience for everyone.

For a snapshot of building your wealth in Chester county, consider the below chart of median sales price of single family homes starting in 2014:

MEDIAN SALES PRICE, WEST CHESTER AREA, SINGLE FAMILY
Primary Year Sale Price, Median Annual % Change Cumulative % Change Equity Buildup.
2014 $415,000
2015 $417,500 0.6% 0.6% $2,500
2016 $423,500 1.4% 2.0% $8,500
2017 $441,000 4.1% 6.3% $26,000
2018 $469,900 6.6% 13.2% $54,900
2019 $480,000 2.1% 15.7% $65,000
2020 $510,000 6.3% 22.9% $95,000
2021 $580,000 13.7% 39.8% $165,000
2022 $640,000 10.3% 54.2% $225,000
2023 $693,000 8.3% 67.0% $278,000
West Chester, Downingtown and Great Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

Bottom line, just the growth in home value increases family wealth by 67%.  Adding to this would be the impact of reducing the outstanding balance on the mortgage. That would come to about $50,000 at a 7% interest rate after 9 years.

Homeownership is not just an economic decision; it also taps into the emotional spectrum of humans. It provides a sense of belonging and autonomy, contributing significantly to one’s emotional wellbeing. Owning a home serves as a source of pride and accomplishment, boosting self-esteem. This emotional connection is further deepened when homeowners transform their property into a personal sanctuary, reflecting their taste, lifestyle, and experiences. The freedom to decorate and rearrange without limitations conveys a sense of control, enhancing emotional stability. Moreover, homeownership often cultivates invaluable relationships with neighbors, enriching social and emotional life. In essence, a house is not merely a physical structure, but an emotional hub imbued with memories, warmth, and a sense of identity.

From a financial perspective, homeownership can be perceived as a robust investment strategy offering both short-term and long-term benefits. In the short-term, homeowners may enjoy tax benefits, as mortgage interest and property tax payments are often tax-deductible. Additionally, a fixed-rate mortgage ensures predictable monthly housing costs, providing homeowners with financial certainty compared to renters who may face unexpected rent increases.

As you can see from the above, in the long-term, homeownership can lead to significant wealth accumulation. As homeowners make mortgage payments over time, they build equity in their homes—a valuable asset that can be used to secure future credit or fund significant expenses. Moreover, homes generally appreciate in value over time, potentially yielding substantial returns when the property is sold. It’s crucial to remember that while homeownership has the potential for significant financial rewards, it also comes with financial responsibilities such as maintenance costs and property taxes. Hence, a well-informed, balanced approach to homeownership is essential to optimize its impact on personal finances.

Homeownership significantly contributes to economic growth and stability. It stimulates demand for goods and services as homeowners usually invest in home improvements and regular maintenance, thereby creating job opportunities in construction, retail, and other related industries. A robust housing market can also lead to increased property tax revenues for local governments, which can be reinvested into community development. Additionally, the ability to borrow against home equity can spur consumer spending, driving economic expansion. Furthermore, homeownership fosters a sense of stability and community cohesion, which can lead to improved neighborhood conditions and increased property values, benefiting both individuals and the broader economy.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move. I would like to become that real estate expert upon whom you can lean.
  • Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is changing, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor. Again we can do that in person or on the computer.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers right now. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.