Are you still trying to decide what goals you want to set for yourself in 2021? If you’re currently renting or thinking about upgrading from your current home, you just might want to make the resolution to buy a house in 2021.
Equity Growth Puts Money in Your Pocket
Home values are expected to appreciate through 2021 and continue to increase over the next four years, according to the Home Price Expectation Survey. What does that mean for you as a homeowner? An increase in equity means your wealth grows because your biggest asset is increasing in value.
In Iowa, homeowners saw an average net increase in home value of about $3,000 over the last year, according to CoreLogic. That number will continue to grow over the next four years. Homeowners can expect to see an average cumulative appreciation of about $47,500 in their personal wealth by 2024. And if you’re currently renting a home? That growth goes right to the landlord.
Mortgage rates are low and stable right now and expected to stay around 3.5 to 3.8 percent into 2021, which is ideal for buyers. Instead of passing home equity wealth on to a landlord, why not keep it in your pocket by purchasing your own home in 2021?
It’s Not Just First-Time Homebuyers Who Will Benefit
It’s not just first-time homebuyers who can benefit from growing home values this year! If you’ve been thinking about selling your home and moving into a nicer one, this would be a good year to make the move.
“As homeowners gain equity in their homes, they are more likely to consider using the equity to purchase a larger or more attractive home,” said Mark Fleming, the Chief Economist at First American.
As your equity grows, you’ll find you have the means to make a downpayment on your dream house. A 2019 report from the National Association of REALTORS® found that for most people there’s a significant difference between the price of the home they sold and the next home purchased. It makes sense- homebuyers are using their growing wealth to upgrade!
If you’re thinking about purchasing your first home or if you’ve been debating if this is the year to buy your dream home (or second home!), the market data may answer the question for you. Let’s make 2021 the year you buy a house!
