A Look at Home Price Appreciation Through 2025

<article class="post-2251 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-2251"><span class="entry-date">July 6, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">A Look at Home Price Appreciation Through 2025</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=A+Look+at+Home+Price+Appreciation+Through+2025&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fa-look-at-home-price-appreciation-through-2025%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="A Look at Home Price Appreciation Through 2025 | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143119/20210706-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143119/20210706-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143119/20210706-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their <strong>financial stability and well-being grow to </strong><a href="https://www.simplifyingthemarket.com/2021/06/23/homeowner-wealth-increases-through-growing-equity-this-year/?a=712984-fa409495d5d70154d03a25e81e9540e2"><strong>record levels</strong></a><strong>. </strong><span id="more-44671"></span></p>
<p>In more good news for homeowners, the most recent <em>Home Price Expectations Survey</em> – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – <a href="https://pulsenomics.com/surveys/#home-price-expectations"><strong>forecasts</strong></a><strong> home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. </strong>Below are the expected year-over-year rates of home price appreciation from the report:<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143120/20210706-MEM-Eng-1.png"><img alt="A Look at Home Price Appreciation Through 2025 | Simplifying The Market" class="aligncenter wp-image-44673" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143120/20210706-MEM-Eng-1.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143120/20210706-MEM-Eng-1.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143120/20210706-MEM-Eng-1-400×300.png 400w" width="650"/></a></p>
<h4><strong>What Does This Mean for Homeowners?</strong></h4>
<p>Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could <strong>increase their net worth by</strong> <strong>a significant amount – over $93,000 dollars by 2026.</strong><a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143121/20210706-MEM-Eng-2.png"><img alt="A Look at Home Price Appreciation Through 2025 | Simplifying The Market" class="aligncenter wp-image-44674" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143121/20210706-MEM-Eng-2.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143121/20210706-MEM-Eng-2.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/07/02143121/20210706-MEM-Eng-2-400×300.png 400w" width="650"/></a></p>
<h4><strong>Home Price Appreciation and Home Equity</strong></h4>
<p><em>CoreLogic</em> recently released their quarterly <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/"><em>Homeowner Equity Insights Report</em></a><em>,</em> which tracks the year-over-year increases in equity. It shows an average <strong>annual gain of $33,400 per borrower over the past 12 months</strong>. In the report, Dr. Frank Nothaft, Chief Economist for<em> CoreLogic</em>, further explains:</p>
<blockquote>
<p><em>“<strong>Double-digit home price growth in the past year has bolstered home equity to a record amount. </strong>The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”</em></p>
</blockquote>
<p>The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to <a href="https://www.simplifyingthemarket.com/2021/06/16/dont-wait-to-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2">sell your current house</a> and move into one that better meets your needs.</p>
<h3><strong>Bottom Line</strong></h3>
<p>Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you’re a current homeowner who’s ready to take advantage of your built-up equity, let’s connect today to discuss your options.</p>
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