Sept. 19, 2022

Today’s cooling housing market, the growth in mortgage rates, and rising economic concerns have some people asking: should I still get a house this year? While it’s true this year has distinctive challenges for homebuyers, it’s vital to factor the long-term gains of homeownership into your decision.
Think about this: if you know people who acquired a home 5, 10, or even 30 years ago, you’re possibly going to have a hard time getting someone who regrets their decision. Why is that? The reason is attached to how you gain equity and wealth as home values increase with time.
According to the National Association of Realtors (NAR):
“Home equity returns are built up through price appreciation and by paying off the mortgage through principal payments.”
Here’s a look at how just the home price appreciation part can truly add up over the years.
Home Price Growth Over Time
Even though home price appreciation has moderated this year, home prices have still increased considerably in recent years. The map below utilizes data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy those returns have been over the last five years.

If you see at the percent shift in home prices, you can see home values grew on average by almost 64% nationwide across that period.
That means a home’s value can grow substantially in a short time. And if you increase that time frame even more, the value of homeownership and the drastic gains you stand to make become even stronger (see map below):

The second map shows, nationwide, home prices appreciated by an average of over 290% over roughly a thirty-year span.
While home price growth varies by state and local area, the nationwide average tells you the typical homeowner who bought a house thirty years ago saw their home almost triple in value over that time. This is why homeowners who bought their homes years ago are still happy with their decision.
Even if home price appreciation eases as the market cools this year, experts say home prices are still expected to appreciate nationally in 2023. That means, in most markets, your home should grow in value over the next year even if the pace is slower than it was during the peak market frenzy when prices skyrocketed.
The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and fight annual lease hikes for no long-term financial benefit? Instead, consider buying a home. It’s an investment in your future that could set you up for long-term gains.
Bottom Line
Don’t let the shifting market delay your dreams. Data shows home values typically appreciate over time, and that gives your net worth a nice boost. If you’re ready to start your journey to homeownership, reach out to a real estate professional today.