Oriana Suarez October 4, 2023
Buyers
Are you contemplating the prospect of becoming a homeowner in today's real estate market, but are concerned about factors like rising mortgage rates and home prices? While these are valid considerations, it's crucial to broaden your perspective and explore the long-term advantages of homeownership.
Imagine this: if you know individuals who purchased homes 5, 10, or even 30 years ago, chances are you won't find many who regret their decision. Why is that? The answer lies in the way home values appreciate over time, effectively bolstering your personal wealth. This could explain why a recent survey by Fannie Mae revealed that a remarkable 76% of respondents view buying a home as a secure investment.
Now, let's delve into how the appreciation of home prices can significantly impact your financial outlook over the years.
The following map, based on data from the Federal Housing Finance Agency (FHFA), highlights the substantial price gains witnessed over the past five years. To provide a more nuanced understanding, the map is segmented by regions to illustrate broader market trends:
Examining the percentage change in home prices, we observe an average nationwide increase of just over 57% in the span of five years. While some regions slightly deviate from this average, overall, home values have experienced robust growth in a relatively short timeframe.
Now, let's extend our timeline further to illuminate the enduring benefits of homeownership and the remarkable wealth accumulated by homeowners (see the next map):
This second map indicates that, on a national scale, home prices appreciated by an average of over 297% over approximately three decades.
This nationwide average demonstrates that a typical homeowner who invested in a house 30 years ago witnessed their property's value nearly tripled during that period. This significant wealth accumulation is a primary reason why so many homeowners who made their purchases years ago still express contentment with their decision.
Furthermore, despite speculation about an impending housing market crash, the reality has been quite different. Experts project that home prices will continue to rise for the foreseeable future.
If you’re wondering if it still makes sense to buy a home today, it's important to focus on the long-term advantages that come with homeownership. When you're ready to take that step, we encourage you to reach out to a local real estate professional who can guide you through the process and help you unlock the wealth-building potential of homeownership.
Free Consultation with Real Estate Experts
Stay up to date on the latest real estate trends.
Buyers
July 1, 2025
What today's market conditions, pricing trends, and buyer demand mean for Union County homeowners looking to sell.
Buyers
June 24, 2025
2025 Home Affordability Guide Across Union, Middlesex, Essex, and Bergen Counties
Tips
June 18, 2025
Featuring Union, Middlesex, Essex & Bergen Counties
Sellers
June 11, 2025
Your step-by-step guide to selling a home in Union County, NJ—covering pricing, preparation, marketing, and closing in today’s 2025 real estate market.
Buyers
June 4, 2025
Why Roselle Park Is a Great Choice for First-Time Buyers
Buyers
May 21, 2025
Explore the top neighborhoods and housing markets in Union, Middlesex, Essex, and Bergen Counties with insights from the experts at Florostone Realty.
Sellers
May 13, 2025
Florostone Realty's Proven Strategies for Maximizing Home Sales in New Jersey's Competitive Markets
Tips
May 7, 2025
Expert Tips to Sell Fast and Maximize Value in 2025
Tips
March 29, 2025
From SEO and social media to email marketing and referrals, this blog breaks down the best strategies to attract and convert leads without picking up the phone.
We strive to become your go-to Real Estate Advisors. Book a free consultation today and let’s get started with a buying or selling plan for your home customized to your unique timeline.