Homeownership is an excellent opportunity for individuals to increase their equity, particularly when their home’s appreciation value increases. In the last year, home prices throughout the country have increased substantially, meaning the net worth of homeowners has also grown significantly. But what does this mean over the next few years? Real estate investor and entrepreneur Andrew Shader shares his insights into how new data could reveal how homes may appreciate through 2025.
For starters, the home appreciation rate for 2021 is forecasted to be an impressive 8.66%, according to the most recent Home Price Expectations Survey. This national survey polled over 100 real estate experts, economists, and investment strategists to gain insight into how national and international influences affect the US housing market.
Further predictions show increased home appreciation, with 2022 estimation at 5.12%, 2023 at 3.7%, 2024 at 3.56%, and 2025 holding steady at 3.33%. In other words, even though the numbers are decreasing from year to year, they are still showing high levels of gain overall.
These forecasts are only good news for current homeowners and those looking to invest in home real estate in the coming years. In fact, the potential for growth in household wealth is shockingly substantial over the next five years. As an example, an individual who purchased a home in January 2021 for $350,000 has the possibility of gaining over $93,000 by 2026! This amount is based on the projections for home appreciation from the Home Price Expectation Survey.
So how can homeowners respond to such significant equity earnings over the next few years? According to Andrew Shader, having financial prosperity is a great way to capitalize on more opportunities. In almost all regions of the US right now, the housing market favors sellers. The demand (people looking to buy homes) is much higher than the supply (homes available for purchase). Therefore, as a homeowner with growing equity, it’s a great time to sell a current house and upgrade to something that better suits your wants or needs or add onto an existing home to increase its value further.
Homeowners who build their household wealth can take advantage of their prospects and find new ways to create a more comfortable lifestyle. With home appreciation value predictions for the next five years, it’s easy to see that home equity is a safe investment opportunity with plenty of potential, now more than ever.
About Andrew Shader
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He specializes in value-added properties and boosting property value through investment, and his broad range of skills and expertise include leadership, management, financial forecasting, budget analysis, and strategic planning. Shader learned most of what he knows by first-hand experience and self-education. He has held numerous positions, ranging from Office Manager to CFO in multiple companies.