This week, I wanted to take a step back from our usual market updates to share some powerful insights about the long-term value of homeownership. While we often focus on day-to-day market fluctuations, sometimes it's valuable to zoom out and look at the bigger picture.

Table of Contents

• The 1995 Homebuyer's Journey

• The Numbers Tell the Story

• Why Homeownership Builds Wealth

• Weathering Market Downturns

• What This Means for You

• Ready to Start Your Homeownership Journey?

The 1995 Homebuyer's Journey

Imagine purchasing a home in March 1995. The median U.S. home price was approximately $130,000, and mortgage rates hovered around 8.53%. Fast forward 30 years to March 2025, and those homebuyers who stayed the course have just made their final mortgage payment. Despite weathering multiple housing cycles-including the early 2000s boom, the 2006-2011 housing crash, and the pandemic housing surge-these homeowners have emerged with a significant financial advantage.

The Numbers Tell the Story

The data is impressive:

• U.S. home prices have increased by 300% between March 1995 and March 2025

• Even in states with the lowest appreciation, like West Virginia and Mississippi, home values still rose by approximately 160%

• Here in Utah, the appreciation has been substantial, outpacing many other regions at 343%

Why Homeownership Builds Wealth

There are several key factors that make homeownership such an effective wealth-building tool:

Leverage Power: Most homebuyers purchase with a down payment rather than paying the full value upfront. This means your return on investment can be significantly higher than the actual percentage increase in home value.

Fixed Payment Advantage: A 30-year fixed-rate mortgage locks in your principal and interest payments. While a typical 1995 homebuyer started with payments around $900 per month, that amount remained constant even as incomes grew by 312% and rents increased by 176% over the same period.

Refinancing Opportunities: The 1995 homebuyer had multiple chances to refinance at lower rates-in the early 2000s when rates dipped below 7%, after the 2008 financial crisis when rates fell under 5%, and during the historic sub-3% rates of 2020-2021.

Weathering Market Downturns

Yes, homeownership isn't always smooth sailing. Between 2006 and 2012, U.S. home prices fell by 28% nationally, with some markets experiencing drops of over 50%. However, those who purchased in 1995 and held through this downturn still came out significantly ahead in the long run. By February 2017, prices had recovered to their 2006 peak, and have continued climbing since then.

What This Means for You

Whether you purchased your home decades ago, just last year, or are still considering your first purchase, the lesson is clear: homeownership is both shelter and investment, providing both immediate value and long-term financial security.

Ready to Start Your Homeownership Journey?

If you've been on the fence about buying in today's market, remember that homeownership is a long-term game. While no one can predict exactly how the market will evolve over the next 30 years, history suggests that those who can weather the inevitable ups and downs often build significant wealth over time.

So, if you’re thinking about your long-term financial future, let's talk about how homeownership fits into your plans. Whether you're a first-time buyer, looking to upgrade, or considering an investment property, I'm here to help you navigate the Utah market with your long-term goals in mind. Simply respond to this email or call me to schedule a no-obligation consultation, and let's discuss how today's decision could benefit you for decades to come.

Here to serve,

P.S. Last week, I sent out two incredible investment opportunities in Provo. As expected, the 4plex is already under contract after receiving 3 offers. But the good news is the duplex is still available. If you know anyone interested in a recession-proof, cash producing property, reach out before it’s too late!