The Connection Between Home Prices & Family Wealth

The Connection Between Home Prices & Family Wealth

  • Megan Douglas
  • 05/23/17

Over the next five years, home prices are expected to appreciate 3.22% per year on average nationally and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.  We know that here in Denver our estimated appreciation levels are double or triple these numbers.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchased and closed on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years (using the national expected appreciation rate)?

Since the experts predict that home prices will increase by 4.4% this year alone, the young homeowners will have gained $11,000 in equity in just one year.

Over a five-year period, their equity will increase by nearly $43,000! 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.

A Local Denver Glimpse

The previous information was all calculated using national estimated appreciation numbers.  But, take a glimpse at what our local Denver appreciation has been HERE.

Bottom Line

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, get in touch with me so we can discuss what you’re looking for in your next home!



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I genuinely care about my clients. (In fact, they’re often surprised by how much so!) But this is a major step in anyone’s life and I want it to be the best experience possible.

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