Homeownership: Unpacking the Benefits

Exploring the Long-Term Advantages of Homeownership

Suppose you’re considering the idea of becoming a homeowner in Metro Detroit in the near future. In that case, you might have heard about higher mortgage rates, increasing home prices, and ongoing concerns about affordability. These factors can raise questions about the right time to make such a significant decision. However, broadening your perspective and considering the enduring benefits of homeownership is essential.

Picture this: if you talk to individuals who purchased a home 5, 10, or even 30 years ago, you’ll find it challenging to find anyone who regrets their choice. Why is that? It’s because property values tend to appreciate over time, leading to the growth of your wealth. This could explain why, in a recent survey conducted by Fannie Mae, a remarkable 76% of respondents expressed confidence in homeownership as a secure investment.

Let’s delve into how the appreciation of home prices alone can accumulate significantly over the years for Metro Detroit.

Understanding Home Price Growth: A 5-Year Snapshot

Curious about how home prices have changed in the past five years? You’re not alone! The map below relies on accurate and up-to-date information from the Federal Housing Finance Agency (FHFA). It highlights the significant growth in home prices across various regions. This way, you get a clear picture of local and broader market trends. Whether you’re thinking of buying or selling, this map offers valuable insights to guide your decisions.

If you look at the percent change in home prices, you can see home prices grew on average by just over 57% nationwide over five years.

Some regions are slightly above or below that average, but home prices quickly gained solid ground. And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer (see map below):

Now Let’s Look at Home Prices a 30-Year Snapshot

The second map shows nationwide home prices appreciated by an average of over 297% over a roughly 30-year span.

If you bought a house 30 years ago, chances are your home’s value has nearly tripled! This is a big reason long-time homeowners are so satisfied with their choices. You might have heard rumors about home prices crashing in Metro Detroit, but they haven’t. In fact, experts predict that home values will keep climbing in the years ahead.

Bottom Line:

Wondering if buying a home in Metro Detroit is still a smart move? Consider the lasting benefits of owning your own space, like building equity and personal freedom. When you’re ready to take that exciting step, let’s talk about your future dream home.