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.