How Much Will Home Values Increase In The Future?
Question: What is a reasonable rate of future appreciation?
Answer: No one knows or can know. No less important, rising values are not guaranteed.
You may find that appreciation in a given community has grown at an average rate over a period of many years. However, such history does not tell us what will happen in the future.
A better approach is to buy real estate with the intent of owning over a period of many years. For example, in some markets a home may show little if any appreciation during the first few years of ownership. Over time however, with rising local values and inflation, prices may rise, sometimes substantially. And sometimes, in addition, loan costs fall. That’s the situation seen by millions of homeowners bought years ago and now have both equity and a low mortgage even when times are tough in many markets.
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Syndicated originally by Content That Works and posted with permission.
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