Wednesday, December 18, 2024 / by Vanessa Saunders
Is Housing Still a Wealth Builder? Let’s Look Beyond the Headlines
A recent CBS Morning segment explored the challenges of today’s housing market, highlighting rising mortgage rates and modest increases in home prices. At first glance, the data might seem concerning:
- Mortgage rates have jumped from 3.10% in December 2021 to 6.60% in December 2024.
- Median home prices have risen from $395,200 (Q3 2021) to $420,400 (Q3 2024).
This shift in affordability has sparked the question: Is homeownership still the wealth builder it once was?
The Bigger Picture
While the market has changed, real estate remains a long-term investment strategy—one that builds wealth over time. Here’s why:
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Equity Growth Over Time: Owning a home means every mortgage payment contributes to equity—essentially forced savings. While prices may rise slower today, equity still grows, and homeownership protects against rising rent costs.
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Stability in Uncertain Markets: Real estate has historically performed well as a hedge against inflation. Your mortgage payment remains predictable, even as the cost of living rises.
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Strategic Investments: Choosing the right property, location, and financing options can amplify wealth-building potential. This is where having expert guidance makes all the difference.
Positive Trends Moving Forward
- Many experts predict eventual stabilization in mortgage rates, making affordability more manageable.
- As prices plateau, buyers have opportunities to negotiate better deals, reducing competition from previous frenzied markets.
Real Estate is a Marathon, Not a Sprint
Yes, today’s housing market requires smarter, more intentional decision-making. But for those who approach it with a long-term mindset, real estate continues to offer significant financial and emotional benefits.
If you’re thinking about buying or selling, let’s connect. Together, we’ll navigate today’s market and find opportunities to build wealth—one step at a time.
?? Download My Free Buyer’s Guide Here to discover how to make the most of today’s housing market! It’s packed with insights and tools to help you make informed decisions, with easy access to listings at Search603Homes.com.
