Twin Cities is projected to appreciate 4.1% this year…what that means to you


We at the Anderson Team understand how important your home is to you…it not only is your safe haven, the place to raise your family, home to your loving pets and a wonderful interest deduction on your taxes. But it is also an investment that can give you amazing returns. What people tend to forget is when you see 4% appreciation on a $300,000 home that you only have the downpayment (and closing costs if you paid them yourself) into the purchase. In so if you put down 10% which is $30,000 and you get 4% return on your home the first year that was purchased for $300,000, then you get $12,000 (4% x 300K) return on your $30,000 investment and that is a 40% return on your investment.

The projected appreciation for the Twin Cities is 4.1% this year. That will vary for areas and price ranges so for more accurate figures we will need to analysis it further for you. We believe that we are now information brokers and in providing you for accurate information you can make a sound, informative purchase or selling decision.

Below is an example of building home equity with the national projected appreciation of 3.35%.

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?


Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line


Home ownership has many apparent and hidden benefits…those that we see everyday includes the pride we feel when we drive up to our home knowing that it is ours, the safety and security of having our own home, making improvements and personalizing something that is truly ours, raising family and/or caring for our loving pets in our home, the tax benefits and appreciation. The hidden benefits are many but a couple are the personal wellbeing of having the privacy of our own space, and the wonderful level of return on your minimum downpayment.

When you are ready to realize these benefits you can reach me at 612-386-8600. Jeff Anderson RE/MAX Results

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