The ink is not even dry on the closing documents on that new home you just bought and already are beginning to wonder how much the value of my new home has increased since signing the purchase contract.
Let us spend a few minutes discussing home appreciation and what are some of the factors that influence appreciation.
By definition, the term appreciation refers to the increase in value of a property over time. As a new homeowner, you would anticipate the value of your home to increase over the years you own it.
There are several key factors that impact the calculation of home appreciation. Here are the ones you need to be aware of during your home ownership.
1. Inflation,
2. Job opportunities in your housing market,
3. Interest rates,
4. Location, and
5. Home improvements you make.
Another good thing to remember about increasing your property values is that you are most likely increasing your home equity if you have a mortgage.
According to Millionacres.com the national average of appreciation is 2% month over month or 14.5% year over year. Valuation rates vary depending upon your location and any additional home improvements made.
Bottom Line:
Today's housing appreciation values have seen a significant increase in the post Covid-19 pandemic. How long they will remain at this level is still an unanswered question. Often, the housing market responds much slower than other economic indicators.
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