Published May 24, 2024

Why Buy Now: Watch Your Future Home’s Appreciation Grow

We have Audrey Hepburn to thank for the belief that “to plant a garden is to believe in tomorrow.” That quote isn’t limited to horticulture alone but also applies beautifully to home ownership. One of the most significant benefits of being a Homeowner – besides watching your garden grow – is seeing your investment appreciate. But if you never plant the first seed and purchase that new home or remain in a holding pattern for fairer weather, that appreciation – and your latest chapter in a new home – can’t begin.

Begin Building More Than a House

You may believe that waiting to purchase a new home is a wise economic decision, but most financial experts view homeownership as a pathway to wealth building. According to the American Enterprise Institute*, national appreciation values averaged around 5.9% per year as of February 2024. For a $500,000 home, that’s $29,500 in appreciation in just the first year. That’s roughly the starting MSRP for a compact sedan! As your home appreciates, it adds to your equity – equity that can play a major role in building your wealth.

Popular Uses for Home Equity

While it's generally advised to let your equity grow over time, for those Homeowners who prefer a more flexible approach, you have the power to tap into your home’s equity. U.S. News & World Report suggests several practical uses for a home equity line of credit (HELOC):

• Home Improvements - Home renovations and additions may also increase your home’s value, depending on the project and quality of construction.
• Consolidate Debt - If you’re drowning in high-interest credit card debt, you may consider a HELOC with more favorable terms to pay it off.
• Pay College Tuition or Pay Off Student Loans – Whether you have a child going off to college or need to pay off your own student loans, a HELOC is a viable option for investing in your child’s future – or your own.
• Realize Your Entrepreneurial Dreams – If you’ve always aspired to be your own boss, you could potentially use your home equity as seed money. HELOCs often offer more favorable terms than a traditional business loan, giving you the opportunity to turn your dreams into reality.
• Break Glass in Case of Emergency – Life can be full of surprises, and not all of them are good. In the event of a chronic illness, catastrophic injury, or the need for major home repairs, it’s nice to know that money is sitting in your home’s equity – ready and accessible when you need a little financial relief.

However, by allowing your home to continue to appreciate and your equity to grow, you could create quite the nest egg to move up to a larger home when it comes time to sell or to move down to a smaller house and invest the remaining windfall in a retirement fund.

Waiting Could Cost You

As housing values continue to rise, the longer you wait, the more it will cost you. Let’s say you’ve found the home of your dreams, but you decide to wait. If it’s even available six months from now in today’s competitive market, the price will likely be even higher. If you buy now, you’ll begin to realize the benefits of rising home prices almost immediately – as property values tend to follow suit. Local housing market trends weigh heavily in your home’s appreciation, as can making wise decisions about popular upgrades. By purchasing with a trusted, award-winning builder like David Weekley Homes, you can rest assured that your home is in an area that has been well-vetted for its viability – with access to great schools, major thoroughfares, and shopping, dining, and recreation destinations. Highly desirable areas – like the ones in which we base our communities – have a history of supporting rising property values. And with regard to alluring upgrades, you’ll have an entire homebuilding team to advise and guide you – consisting of a Personal Builder℠, Sales Consultant, Design Consultant, and Warranty Service Representative.

We invite you to begin your new home search with David Weekley Homes at www.DavidWeekleyHomes.com. Still not convinced that now is the best time to buy? Read our article, Should I Buy a House Now?, to discover five additional reasons why purchasing today is your best option.