Home Price Appreciation Rates: "Don't Be Price Sensitive"

How much do homes go up in value each year? These home price appreciation infographics show yearly home price appreciation rates in the United States in recent history. Learn the scripts and talking points provided below to help use the information contained in these images to show price sensitive clients how the market value of a home changes rapidly with each passing year, and that delaying a move because of price if often a needless mistake.

The History of Home Price Appreciation

As shown in the graphic immediately below, home price appreciation is very stable and predictable. Even despite the economic recession from 2007 to 2011, U.S. home prices still increased at an average rate of approximately 4% per year for the past 25 years.

Infographic provided courtesy of Keller Williams Realty

Home Prices Always Increase Over Time

The graphic below further illustrates the consistent upward trend of housing values despite regular recessions every ten years or so dating back almost 40 years. The market value of a home is always a moving target, and if history is an accurate indicator, values will always steadily increase over time.

Infographic provided by Reuters.com

Why Price Doesn’t Matter

Clients typically place far too much importance on the purchase or sales price of homes. Home buyers and sellers that become too price-sensitive typically don’t understand how home price appreciation over the years diminishes the importance of the purchase price of a personal residence. They don’t understand that when it comes to the sales price of a personal residence, it all comes out in the wash. A sellers may delay moving into a home that provides them a better lifestyle since they can’t get the price they want for their home, or a buyer might wait to purchase a home for what they feel is a fair price at or below market value. Learn the scripts and talking points to use with the information provided in the real estate infographics above to show that the sales price of a personal residence doesn’t matter in this video.

The Future of Home Price Appreciation Rates

Based on Zillow’s Home Price Expectations Survey, home price appreciation rates are expected to increase steadily through 2018 at a rapid pace no matter how excited or pessimistic you may feel about the housing market. So how much will the sales price of your home really matter down the road?