One of the many reasons to buy a home is that it’s a significant way to build wealth and gain financial stability. According to Freddie Mac:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
With spring approaching, now’s a great time to consider if buying a home makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.
The Largest Part of Most Homeowners’ Net Worth Is Their Equity
You may be surprised to learn how much of a homeowner’s net worth comes from owning their home. The National Association of Realtors (NAR) shares:
“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
Build Wealth
In other words, home equity does more to increase the average household’s wealth than anything else. And according to data from First American, this holds across different income levels (see graph below):
Key Takeaway
One of the most significant benefits of owning a home, regardless of income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.
Other educational articles about the market and your home search are under Karen’s Blog.
