Most experts are calling for home prices to continue appreciating over the next several years. The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home appreciation to increase as follows:
Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example: A homeowner could increase their net worth by over $80,000in five years. That’s an average of $16,000 annually. That number should be in any equation determining the financial benefits of owning a home compared to renting.