The Long-Term Benefit of Homeownership

Seeing the effects of the cold housing market, increasing mortgage rates, and the effects of economic fluctuations, some Lynchburgers are wondering: should I buy a home this year? For Lynchburg homebuyers, this year has been a hard one, but people should be reminded that there are long-term benefits to being a homeowner, with more than three quarters of people living in Lynchburg VA for more than five years being very satisfied with their purchase. Lynchburg Virginia homeowners benefit from having more equity in their homes over time.

Home Price Growth Over Time

The National Association of Realtors says: Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments. Take a look at how the piece on home price appreciation adds up over time.

Even though home price appreciation has slowed this year, home values have still increased dramatically in recent years. The map below uses data from the

According to the numbers, on average nationwide the values of homes went up by almost 64% in that time frame, so it’s no surprise they would grow even more substantially over a shorter period.

However, if you were to extend that window of time by years, then the benefit of homeownership and its (significant) increase in net worth become even clearer (check out the map below).Lynchburg Home Prices" width="960" height="840" />

Home Prices Appreciate

Lynchburg Home Prices" width="960" height="840" />

According to the second map, home prices have appreciated by an average of 290% over the past thirty years. Despite the fact that home price growth varies by state and local area, the average homeowner who purchased a home thirty years ago saw their home almost triple in value.

Lynchburg homeowners who bought their homes years ago remain satisfied with their decision. Even if home price appreciation eases as the market cools this year, experts say Lynchburg home prices will still rise 4%-7% by 2023.

Lynchburg home's value will grow in most neighborhoods over the next year, even if at a slower pace than during the peak market frenzy, when prices skyrocketed. Then why rent and fight annual lease hikes for no long-term benefit? Instead, think about purchasing a home in Lynchburg Virginia. The investment could set you up for long-term success.

Bottom Line

Despite the shifting Lynchburg real estate market, you can still achieve your dreams. Lynchburg home values appreciate, so your net worth increases. We would love to connect with you if you're ready to start your journey to homeownership.