Summer is coming to an end and soon we’re heading back to school. Once we’re all done mourning the loss of our vacations and slow, sunny days, it’s time to brush up on something many have lost sight of over the past several months. Despite an increase in both rates and home prices, homeownership is still the biggest opportunity to build wealth — for anyone.
Let’s get back in the classroom, go through our favorite subjects, and explore how you can help your borrowers begin building wealth, despite today’s market challenges.
Math: Home Prices
You don’t need a calculator to see that home prices are high. According to The Hill, home prices are up more than 30% from 2020 and almost 16% in the last year alone. The median home price has now reached $428,700 — a significant jump from the $329,000 we saw just two years ago. You don’t have to be a mathematician to see home prices have made a huge jump over a relatively short amount of time.
It’s easy to think that borrowers should wait for prices to go down, but, while the price surge may slow, prices likely won’t return to those low, pre-pandemic levels that everyone is hoping for. Worst case scenario, they could potentially continue to get higher.