Real Estate. A Powerful Wealth Building Tool
Whenever someone asks me this question, I always think about a document produced by the California Association of Realtors (C.A.R.) called Median Prices of Existing Detached Homes Historical Data. It tracks data on Existing Detached Homes prices, by county, going back as far as January 1990. It shows the upward trajectory of home prices in the Bay Area, giving insight into the power of real estate to build wealth. I have one report from C.A.R. that tracks similar data going back as far as 1979. Still, my advice to clients is always to consider their objectives.
What Are Your Objectives?
Are you planning to buy a home and live in it for years to come? Then chances are buying a home is the right move for you. Right now, it is not uncommon to pay in a monthly mortgage what you are paying in rent, and owning a home means you won’t have to deal with the uncertainty that can come with being a renter. After all, Buying a home gives you stability and sets you free from worrying about rent increases or you not being able to secure an annual lease for your family.
While there have been hiccups in the nation’s economy, one thing is clear, real estate home prices in California tend to trend upward over time. Baby Boomers who purchased homes 30 or 40 years ago, for tens of thousands of dollars, now find themselves living in the same homes that are currently worth hundreds of thousands of dollars, and in some cases — millions. Of course, this depends on where they live. However, a good investment? You bet! While Solano County is still recovering from the hit we took between 2007 and 2009, today, the median home price in Solano County, as of March 2020, was $457,950. In January 1994 the median home price was just $148,000.
Build Wealth and Enjoy the Pride of Home Ownership
We help people buy and sell real estate, because we know that we are helping people to build wealth for their families. That is our driving force. However, we also believe that aside from the tax and other benefits, there is one more thing that is so important about owning a home. Pride of ownership. Not only can you sleep easy at night, you can also feel good knowing that your home is your own and you’ve achieved a major milestone in your life that will benefit your family for years to come.