Over the next five years, District of Columbia home prices are expected to appreciate, on average, by 3.6% per year and to grow by 18.2% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
So, what does this mean for DC homeowners and their equity position?
As an example, let’s assume a young couple purchased and closed on a $250,000 condo this January (yes - it's possible, even in Dupont Circle!). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?
Since the experts predict that home prices will increase by 5.0% in 2018, the young homeowners will have gained $12,500 in equity in just one year.
Over a five-year period, their equity will increase by over $48,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.
Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today! Just call or email me, and I will connect you with a trusted, local lending partner who can let you know how much home you can afford, without pulling your credit. You'd be surprised at the housing options available in the District of Columbia at ALL prices ranges. All it takes is that first call!