“The best time to plant a tree was 20 years ago. The second best time is now.”
This Chinese proverb was first told to me by one of my real estate coaches many years ago, and I love it today as much as I did then and applies beautifully to our real estate market.
When is the best time to purchase a home? Twenty years ago. When is the next best time? NOW!
When is the best time to become a real estate investor? Twenty years ago. When is the next best time? NOW!
The Realtor Association of the Sioux Empire recently reported that the average home price year to date for the Sioux Falls metro area is $303,486, which is over a 15 percent increase from 2020 at the same time. With the growth pattern the Sioux Empire is in, that number likely will not go back down.
Our country’s history has proven that when the inflation rate increases, mortgage rates follow. The mortgage market already has seen some signs of the change coming.
Rising prices and the eventual raising of mortgage rates equal less buying power but favor wealth creation for homeowners and investors.
Whether you’re moving up, down or into our area or looking to start or add to your investment properties, buying real estate right now is a very smart financial move. Wealth through real estate is one of my all-time favorite things.
With the ever expanding footprint of our little piece of heaven in the Sioux Empire, becoming an investor is easier than ever. Buying a piece of property and having someone else pay the mortgage while the property continues to appreciate at such amazing levels is the American Dream.
One of Amy Stockberger Real Estate’s core objectives is wealth creation through real estate for our clients and also our agents and employees.
Leverage is the name of the game, and if the leverage isn’t able to be had alone, partner up. Work with other like-minded investors, friends or family, and invest in our real estate market.
The standard down payment for an investment property is 20 percent. With prices already increasing 15 percent year to date, your equity in one year nearly matches the down payment in our area.
Don’t have all of the 20 percent? Finding other investors has never been easier. In an effort to build big, beautiful lives and legacies for our clients and team, Amy Stockberger Real Estate has started a new investor group where anyone is able to join, opportunities are passed on to the entire group, and if it makes sense to you at the time, you can jump in. Click here to be contacted for more details.
With the rise in home prices across the U.S., the conforming rate limits will be going up into the low $600,000s, which is up in our area from $548,250. This means a jumbo loan, which is typically at a higher interest rate, will not be necessary for anything under that new limit. Your buying power is greater, and your wealth creation is building.
The real estate blog Keeping Current Matters shared the most recent Home Price Expectations Survey, with insight from over 100 economists, real estate experts, and investment and market strategists. It expects home values and, therefore, equity to increase as follows:
- • 2021: 11.74 percent
- • 2022: 5.82 percent
- • 2023: 3.94 percent
- • 2024: 3.56 percent
- • 2025: 3.55 percent
The survey estimates a 31.8 percent cumulative appreciation over the next five years. Using the survey’s annual projections, the graph below shows the equity buildup a purchaser could earn, using a $350,000 home as an example:
That’s a potential increase in household wealth of $111,285 over five years.
Twenty years ago, the average price of a home in the Sioux Falls metro area was $129,157. It was an amazing time to buy a home 20 years ago, but the next best time is now. Amy Stockberger Real Estate would love to help grow your wealth through real estate.
Click here if you are considering a relocation to Sioux Falls or the surrounding area or want a free relocation packet full of nuggets of info about the best of Sioux Falls.