It is safe to say that the word “home” has taken on new meaning during this year’s health issues. In California, many have considered buying or selling much sooner than they anticipated. This demand and lower housing inventory in many California counties, have seen an almost unprecedented appreciation in real estate values.
According to the Bureau of Economic Analysis, the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the 2nd quarter. There is no doubt the growing economy is being fueled in large part by the healthy housing market. Economist forecast this housing growth to continue into 2021, which will make a big impact on the economy next year as well.
For years, real estate has been considered the best and safest investment you can make. A major reason for this characterization is the fact that an individual’s net worth is through homeownership. According to the 2019 Survey of Consumer Finance Data from the Federal Reserve, for the average homeowner: “…a primary home accounts for 90% of the total wealth of a family in the U.S.”
The National Association of Realtors has explained how wealth gains tend to play out over time: “Housing wealth accumulation takes time and is built up by paying off the mortgage debt and by price appreciation. And while home prices can fall, home prices tend to recover and go up over the longer term.”
Whether you are a current homeowner in one of many California’s populated counties, planning to put your equity toward a new home or have hopes of buying your first home soon, homeownership will always be a great opportunity to build your net worth. Owning a home is unquestionably an investment in your financial future.
If you have difficulties qualifying for a conventional home loan, give Sun Pacific Mortgage a call at 707-523-2099 to see if private financing is a solution to your problem. We have helped thousands in California over the past 32 years to realize their dream of home ownership.
