Benefits of Home Appreciation

Home Appreciation Article


Home appreciation is the increased value of a primary, secondary, or investment property over a period of time. The value of a home fluctuates depending on the changes in the housing market and updates or renovations a homeowner makes. These changes play a key role in determining appreciation rates and the benefits available to homeowners.

Natural and intentional appreciation can also impact the value of a home. Some natural appreciations are the housing market, location of the home, interest rates, and future development within the area. Intentional appreciation are home improvements made by homeowners to increase the property’s value. Home improvements can be renovations, interior/exterior upgrades, and increased square footage.

Whether you are a first-time home buyer or a seasoned homeowner, it is important to stay in tune with your home’s value and appreciation rate. On average homes appreciate between 3% to 5% a year but are adjusted depending on the housing market.

High home appreciation rates can be tied to low interest rates. Low interest rates allow buyers to have more buying power. Higher buying power creates housing demand which directly correlates to increased home values and high home appreciation. Greater appreciation rates offer immense benefits to homeowners, such as a profit when selling or having more equity to utilize on a cash-out refinance.

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