Home Price Increases Remain Strong, Buyers Shift Mindset to Long-Term Gains

If you follow our Instagram, you will remember a post that was shared a couple weeks ago on changing your mindset when it comes to purchasing a home. The real estate market has been highly competitive for a few years now, with a large pool of buyers competing to purchase a home and a lack of inventory available.

When working with homebuyers, one of the most significant hurdles they face is having to shift their mindset from a short-term perspective to a long-term perspective. A great thought-provoking question for home buyers to reflect on is: “Do you know anyone who purchased a home 5, 10 or even 30 years ago? And despite potentially paying more than they intended, do they regret their decision?”

Keeping Matter Current, recently released some compelling visuals that effectively demonstrate the long-term advantages of homeownership. The graphics below depict national appreciation over the past 5 and 30 years, respectively. Upon reviewing, it becomes apparent that even given the current market conditions investing in real estate remains a strong investment.

One of the most common concerns I hear from homebuyers is their worry about home values falling because of higher interest rates than years prior. To put it simply, that concern is just not true. The Greater Milwaukee Real Estate market ranks in the top 10 metros with the largest year-over-year home price gains.

Nationally, home prices are still on pace to see 5-6% appreciation for 2023 – and if interest rates drop towards the end of the year and more people re-enter the market that number could increase.

What’s the takeaway from this information…

As a homebuyer shift your mindset from “homebuyer” to ‘homeowner.” Think of the long-term gains and not short-term up-front costs and expenses. If you have a budget or monthly payment that you’re comfortable with now, be aggressive, write a strong offer, and get a property under contract. When rates go down you can always refinance. You’ll be happy with your purchase after you see all the equity that has built in your home.

Have questions about purchasing a home? The Brill Team is here to help!