CBW Home Simplicity: December 2020 Issue

SIM P LICIT Y DECEMBER 2020

HOMEOF THEMONTH

exquisite trophy estate IN FAIRBANKS RANCH

Homeownership is The Key To

building wealth

Buyers Are Finding in the LUXURY HOME MARKET

more space

Guiding You

HOME

Š2020 Coldwell Banker West. All Rights Reserved. Coldwell Banker West fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. DRE# 01481919

y p p a H s y a d i Hol

YOUR LUXURY

SANTALUZ

6 BR | 7.5 BA | 7,851 ESF

This estate stands above the tenth fairway in Santaluz with unparalleled panoramic views.

The backyard includes a vanishing edge pool, spa, firepit, and built-in BBQ. MLS #200037965

$6,749,000

RAMONA

4 BR | 2.5 BA | 3,525 ESF

Located on 8.49-acres sits this beautiful vineyard estate and provides roughly 1,700 vines for wine-making. Enjoy the rustic charm this home has to offer.

MLS #200020040

$4,500,000

H O M E A WA I T S | C O L D W E L L B A N K E R L U X U R Y . C O M

SANTALUZ

6 BR | 6 FULL & 2 HALF BA | 8,093 ESF

This gorgeous single-level estate offers south-facing views and a myriad of amenities, including an interior courtyard with a fireplace and a resort-style pool.

MLS #200025163

$4,499,000

DOWNTOWN

3 BR | 3 BA | 2,034 ESF

Experience the breathtaking views of the city and bay at this skyrise condo! Features include a yacht share, concierge porter curb services, and a movie theater with a bar.

MLS #200043617

$3,895,000

YOUR LUXURY

SOLANA BEACH

5 BR | 3 BA | 4,086 ESF

Enjoy panoramic views of the water from the yard, the patio, the house, and the balcony at this home! Located in a coveted community and is within walking distance to the beach.

MLS #200038771

$3,750,000

LA JOLLA

4 BR | 4.5 BA | 4,449 ESF

This immaculate villa offers ocean views and overlooks the golf course of La Jolla Country Club. The grand and generous living spaces are flushing with natural light.

MLS #200035094

$3,700,000

H O M E A WA I T S | C O L D W E L L B A N K E R L U X U R Y . C O M

MISSION BAY

2 BR | 2.5 BA | 1,351 ESF

This custom and contemporary home offers oceanfront luxury in one of San Diego’s most entertaining and vibrant coastal communities.

Every room in the home has ocean views!

MLS #200041206

$3,250,000 - $3,750,000

MISSION HILLS

7 BR | 6 BA | 4,460 ESF

Welcome to this sophisticated property in the heart of Mission Hills. This custom-built 2008 modern Craftsman home offers unparalleled quality and timeless finishes.

MLS #200049174

$2,999,000

SANTALUZ

4 BR | 4.5 BA | 4,315 ESF

Don’t miss this incredible Spanish-style 1.58acre estate perched above the 11th fairway of Santaluz’s golf course with unobstructed views to the west.

MLS #200047863

$2,995,000 - $3,195,000

CORONADO

2 BR | 2 BA | 1,276 ESF

Discover the ultimate Coronado Shores lifestyle in this highly desirable corner unit with unforgettable views of the ocean, bay, Point Loma, and Downtown.

MLS #200048698

$2,595,000

HOMEOF THEMONTH

17775 Calle Mayor FAIRB ANKS RANCH

CLICK HERE

TO VIEW THE 3D TOUR

6 BED R O O MS | 9 B ATH S | 1 3,000 S F

E

xquisite Trophy Estate with over 13,000 SF of luxurious living space and every possible amenity. Since purchasing the property 6 years ago, sellers have added both square footage and tremendous value, resulting in a truly extraordinary estate! Ideally located on a quiet, interior lot in guard-gated Fairbanks Ranch, where residents enjoy 24-hour security with roving patrols, a clubhouse, private lake with fishing and paddle boating, five tennis courts, a private park, walking trails and a top-notch equestrian center.

A worlD -class r es id ence 1 7 7 7 5 CA L L E M AYO R , R A N C H O S A N TA F E , CA 92 0 6 7 Upon entering the grand front doors with stunning, handcrafted iron scrollwork, you’ll find a richly appointed executive office with coffered wood ceiling, woodpaneled walls and a conference area. The formal dining room sits across the entryway and offers an additional dining area and access to the kitchen through the butler’s pantry.

The formal living room is centered around a magnificent stone fireplace and features bi-fold doors to the back patio for indoor/

outdoor entertaining. Located just steps away is a stone-clad wine cellar with tasting area.

The east side of the house offers an elevator to the second floor just outside of the cozy 9-seat theater. The kitchen features lovely granite countertops and a wood-paneled refrigerator that blends in with the rest of the décor. A dining area between the kitchen and family room affords a lovely view of the pool. The family room is graced by a spectacular wood-beamed ceiling, gorgeous

Listed by

GLORIA SILVEYRA-SHEPARD REALTOR® | DRE# 0104096 6

stone fireplace, wood built-ins, a wet bar and sliding panel doors that open to a spacious covered patio. Auto shades on these west-facing rooms offer cooling comfort in the summer.

The incredibly private grounds include a sparkling pool and spa with grotto and waterfalls, rolling lawns and expansive new flagstone patios, with both covered and uncovered gathering areas around four outdoor fireplaces. To the side of the house is a fenced raised-bed vegetable garden.

The west side of the house includes the lavish master suite and 2 additional bedrooms.

Skylights allow for natural illumination in the hallway between the rooms. The master bedroom features a stunning bathroom with dual showers, a gorgeous copper sleigh bathtub, dual dressing closets with extensive storage space,

and a private outdoor shower convenient to the pool area.

The second floor offers a sports room with beautiful wood and tile wet bar, 2 secondary bedrooms, and a spacious guest suite with living room, kitchenette, private balcony and a separate entrance.

This exclusive property is listed at $5,495,000.

To learn more about this beautiful home, please contact Gloria at 619.417.5564

POINT LOMA

4 BR | 3.5 BA | 2,883 ESF

Quite possibly the best view in Point Loma!

This lovely single-level ranch style home features walls of windows, multiple view decks, and two fireplaces.

MLS #200051978

$2,495,000

MISSION HILLS

4 BR | 3.5 BA | 2,484 ESF

Built in 2017, this exceptional contemporary canyon retreat is located in the heart of North Mission Hills. Enjoy sounds of nature while watching sunsets from the deck.

MLS #200050957

$1,275,000

MT. HELIX

3 BR | 2.5 BA | 3,395 ESF

This custom home sits on 1.05 acre of usable property. Walk through the grand entry to panoramic views of mountains and the city lights of East County.

PTP2001299

$1,800,000

SANTALUZ

3 BR | 3.5 BA | 2,596 ESF

Situated on the 16th Fairway, this stunning Sentinel Plan 2 with casita, offers panoramic views of the golf course, evening lights, mountains and a peak of the ocean.

MLS #200046768

$1,795,000 - $1,895,000

EL CAJON

6 BR | 4.5 BA | 3,577 ESF

Exquisite single-level Itailan Village nestled on over 1 acre showcases rich details, privacy, mature trees, waterfall with groto, and detached guest quarters.

PTP2001457

$1,599,000

MURRIETA

4 BR | 2.5 BA | 2,361 ESF

This beautiful 2.65-acre property offers loads of potential for development. Features a large Victorian-style home with a separate 700 ESF granny flat in the rear of the lot.

MLS #200042759

$1,549,000

CORONADO

2 BR | 2 BA | 896 ESF

Expansive 400+ square foot roof deck is the ultimate place to soak up the Coronado sun, watch the world sail by, or enjoy an evening cocktail on the bay.

MLS #200025368

$1,500,000

ALPINE

6 BR | 6.5 BA | 5,400 ESF

Beautiful home and guest house with double private gated driveways to your custom estate! Added in 2005, the pool and spa complete the spacious entertainer’s yard.

MLS #200047111

$1,495,000

PACIFIC BEACH

2 BR | 2 BA | 1,353 ESF

Enjoy gorgeous panoramic views of Mission Bay from this single-level updated unit! Walk straight in from the parking to the condo and then steps to the pool and bay.

MLS #200033630

$1,350,000

UNIVERSITY CITY

3 BR | 2.5 BA | 2,706 ESF

Upon entering the home, you’ll find beautiful marble flooring throughout the lower level.

Entertain guests on the beautiful lush green wrap around patio.

PTP2000452

$1,349,000

BALBOA PARK

2 BR | 2 BA | 1,697 ESF

This elegantly appointed home exudes style and beauty. Recent remodels include custom lighting, stone surfaces, and designer paint, tile and more.

MLS #200048601

$1,299,000 - $1,325,000

OCEAN BEACH

4 BR | 3 BA | 1,651 ESF

This may be the cutest property in Ocean Beach. Upgrades include dutch doors, fireplaces, adorable appliances, outdoor shower, and more. Perfectly adorable!

MLS #200051226

$1,295,000

SOLANA BEACH

3 BR | 2.5 BA | 1,944 ESF

California dreamin resort living at its finest!

Highly upgraded condo on the 13th tee with stunning panoramic golf course and peekaboo ocean views.

NDP2002562

$1,275,000

MT. HELIX

6 BR | 4 BA | 3,915 ESF

Private backyard is perfect for entertaining with a pool, tall bamboo and lush landscaping.

The master retreat features travertine tile, balcony with views, and vaulted ceilings.

MLS #200043526

$1,249,000

LA JOLLA

3 BR | 2 BA | 2,023 ESF

Ocean views and gorgeous sunsets! Open floorplan showcasing dramatic vaulted ceilings, beautiful wood floors throughout, fireplace, dining room, and expanded master en-suite.

MLS #200051481

$1,225,000

CORONADO

2 BR | 2 BA | 1,410 ESF

This one-story condo is centrally located in the village of Coronado. Beautifully renovated, this unit features mahogany floors, french balconies off each bedroom, and a stunning kitchen.

MLS #200042717

$1,200,000

IMPERIAL BEACH

6 BR | 4 BA | 2,877 ESF

Immaculate property on the largest lot in Imperial Beach! The door from the family room opens to the backyard for a breeze and entertaining.

PTP2000987

$1,200,000

BONITA

5 BR | 3.5 BA | 3,360 ESF

Chef’s delight kitchen with stainless steel appliances, pantry, designer quartz, and crown molding throughout. Great private spa to enjoy those evenings with lights.

MLS #200043677

$1,199,000 - $1,275,000

DOWNTOWN

3 BR | 2 BA | 1,625 ESF

Impeccably updated two bedroom plus den with views of San Diego bay from every room! Open floorplan and spacious patio with water views are ideal for entertaining.

MLS #200050383

$1,199,000

MT. HELIX

4 BR | 3 FULL & 2 HALF BA | 3,324 ESF

Pride of ownership abounds in this elegant turnkey view home enveloped in a forestlike setting on Mt. Helix. You will love the remodeled open-concept kitchen.

MLS #200049276

$1,150,000

VALLEY CENTER

5 BR | 5 BA | 4,626 ESF

Beautiful home located in the prestigious Valley View Ranch. The home features two staircases and a dual fireplace in the living room and in the family room.

PTP2001232

$1,100,000

BUYER S AR E FI N DI N G MOR E SPA CE I N THE LU XURY HOME MA R KET

A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.

The Institute for Luxury Home Marketing (ILHM) explains, “With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback. For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-

size homes - specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.�

This was not the case at this time last year, as the most recent Luxury Market

Source: Buyers Are Finding More Space in the Luxury Home Market. (10/1/2020). Keeping Current Matters. https://www.mykcm.com/2020/10

Report from ILHM emphasizes that “Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”

For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes that “Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market. Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their

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city lifestyle for a home that has it all.”

Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.

BOTTOM LINE If you’re ready to gain some breathing room in a larger home, let’s connect so you have the guidance you need to find more space in the luxury home market.

ALPINE

BONITA

4 BR | 2 FULL & 2 HALF BA | 2,676 ESF

4 BR | 2 BA | 2,107 ESF

Welcome to this beautiful custom-built home with jaw dropping views! You will love the beautiful custom granite counters and built-in cabinets throughout home.

As you walk into this beautiful property, you’ll see and feel this open concept floorplan, with a formal living room and dining room. The entertainer’s backyard offers a gorgeous pool, spa, and barbecue area.

PTP2001519

PTP2001445

$799,000 - $819,000

BANKERS HILL

$849,000 - $889,000

CHULA VISTA

2 BR | 2.5 BA | 1,287 ESF

5 BR | 4 BA | 3,462 ESF

The floorplan is flexible and provides both privacy and ample room for residents and guests. The home is centrally located from Balboa Park, downtown, and Hillcrest.

An entertainer’s dream backyard that offers gorgeous flaming features across the entire back of the pool, low maintenance, great outdoor kitchen with beautiful built-in BBQ and outdoor speakers.

PTP2001264

PTP2001222

$920,000

$999,000 - $1,049,900

CORONADO

DOWNTOWN

2 BR | 2 BA | 1,194 ESF

2 BR | 2 BA | 1,370 ESF

This is the lowest priced two bedroom condo in the village. The unit faces Orange Avenue allowing for lots of natural light, enjoy the 4th of July parade from your balcony and fireworks from the roof deck.

Popular corner plan with split bedroom layout and panoramic views, interior finishes include Brazilian Cherry hardwood floors, granite counters, beautiful cabinetry and stainless steel appliances.

MLS #200042729

MLS #200011717

$795,000

CORTEZ HILL

$899,000

EASTLAKE GREENS

2 BR | 2 BA | 1,144 ESF

4 BR | 3 BA | 2,472 ESF

An incredible investment for the savvy downtown condo buyer. The unit features open concept living, custom upgrades, glass panel kitchen backsplash and quartz countertops.

Recently remodeled in 2018, this home features Cathedral ceilings, gorgeous custom kitchen with abundant natural light, stainless steel appliances, engineered hardwood floors and much more.

MLS #200022328

PTP2000655

$899,000

$820,000

EASTLAKE GREENS

EL CAJON

4 BR | 2.5 BA | 2,302 ESF

6 BR | 5 BA | 3,699 ESF

As you walk in you will be greeted by luxurious cathedral ceilings, gorgeous kitchen with abundant natural light, stainless steel appliances, hardwood floors, private backyard and much more.

Welcome home to your country retreat located close to all amenities. Freshly updated kitchen is large and has stainless steel appliances and walk-in pantry.

The bonus guest house has definite rental potential.

PTP2001524

PTP2000235

$800,000

EASTLAKE

$870,000

EL CAJON

4 BR | 3 BA | 2,725 ESF

7 BR | 4 BA | 2,879 ESF

Beautiful upgraded home on a quiet cul-de-sac in Eastlake shores. Upon entering the custom French doors you’ll notice vaulted ceilings, porcelain tile flooring and beautiful hand rails.

Single-family home with auxiliary living area with separate entrance, perfect for extended family.

Upgrades include tile in the baths, upgraded countertops, updated kitchen, flooring, paint and more.

PTP2000428

MLS #200051591

$759,000

$794,000

EL CAJON

LA JOLLA

3 BR | 2 BA | 2,112 ESF

2 BR | 2 BA | 1,204 ESF

Single-level famly home, easy entertaining in large backyard with numerous fruit trees, pool and covered patio. Huge separate family room with fireplace is perfect for watching movies.

Sought after La Jolla location situated near the village within a half a block to the beach. Open and spacious floorplan with french doors to balcony and ocean views.

MLS #200051264

MLS #200048993

$759,000

JULIAN

$879,900 - $919,000

LA MESA

4 BR | 3 BA | 3,150 ESF

4 BR | 3 BA | 3,285 ESF

Large view home overlooking Lake Cuyamaca in Julian. Glowing with natural light and custom features, this property boasts over four acres of usable view land.

You are welcomed by the living room area with high ceilings and beautiful wood beams that compliment the living and dining area, family room with firepalce, and open kitchen.

MLS #200043003

PW20234794

$897,777

$966,000

LITTLE ITALY

MT. HELIX

3 BR | 2 BA | 1,568 ESF

3 BR | 3 BA | 1,516 ESF

Extensively renovated corner unit in Little Italy. Lives like a single-family home with 1,568 square feet, walk-in closets and full size laundry room. Floorplan features wood floors and quartz kitchen countertops.

Charming resort-like home that features a spacious grand salon room with a wall of glass that is excellent for indoor/outdoor living year round. All the rooms feature large corner windows for views.

MLS #200043471

MLS #200043344

$799,900

MIRA MESA

$895,000

NORMAL HEIGHTS

5 BR | 2.5 BA | 2,138 ESF

3 BR | 1 BA | 1,099 ESF

The kitchen leads to the generous backyard complete with covered patio area, pool, spa and large deck. This Mira Mesa home is your own paradise!

Light and bright North Park custom ranch home on a low traffic cul-de-sac. This beautiful home features an open plan with great indoor/outdoor living space.

Located near restaurants, shops, and schools.

MLS #200049643

MLS #200051794

$795,000

$779,000

OCEANSIDE

PARADISE HILLS

2 BR | 2 BA | 1,041 ESF

8 BR | 4 BA | 2,578 ESF

Beautiful upstairs corner bungalow boasts an open concept floorplan, spacious master bedroom, cozy fireplace in living room, large kitchen and ocean views.

Rare business opportunity for the right buyers!

Home features a total of eight bedrooms plus bonus room, variety of fruit trees, and granite countertops throughout kitchen.

MLS #200044074

PTP2000437

$750,000 - $800,000

OTAY RANCH

$769,000 - $799,000

POINT LOMA

5 BR | 4.5 BA | 3,704 ESF

2 BR | 2.5 BA | 1,703 ESF

Built in 2018, this home exudes style, warmth and stunning details. Home offers spacious living areas, a kitchen with designer features, and an outdoor space perfect for entertaining.

Contemporary showroom style townhome in walking distance to Shelter Island. Stunning panoramic views of Point Loma and bay from your rooftop deck and BBQ area.

MLS #200045599

MLS #200051368

$925,900 - $948,500

$989,000

TIERRASANTA

UNIVERSIT HEIGHTS

4 BR | 3 BA | 2,230 ESF

3 BR | 2.5 BA | 1,836 ESF

Highly upgraded. Nearly $200,000 in improvements!

Custom extended front entrance, dramatic high ceilings and rolling staircase. 3-car garage on cul-desac and canyon sunset views.

West facing home opens to the grassy point boasting ocean and sunset views. Enjoy the large master bedroom with huge terrace and amazing views and cool breezes.

MLS #200049957

MLS #200049494

$999,000

SPRING VALLEY

$975,000

WINDING WALK

4 BR | 4 BA | 2,900 ESF

5 BR | 4.5 BA | 3,492 ESF

Grand entry to a true open floorplan, new laminate flooring and fresh paint with accent walls downstairs.

Enjoy awesome sunsets and views of Mount Helix on the balcony.

This beautiful Windingwalk home has it all! From travertine hardwood flooring, plantation shutters throughout, oversized kitchen, amazing outdoor kitchen and bar to entertain.

PTP2000218

MLS #200051641

$850,000 - $874,000

$900,000

GREAT FUTURE IS IN GOOD CHARITY.

Find out how you can help by visiting

cbwgives.com

COLDWELL BANKER | WEST

ALLIED GARDENS 3 BR | 2 BA | 1,390 ESF PTP2001650 | $650,000

BONITA 4 BR | 2 BA | 1,960 ESF PTP2000834 | $699,900 - $759,900

ALPINE 4 BR | 3 BA | 2,126 ESF PTP2001175 | $699,000

CHULA VISTA 3 BR | 3 BA | 1,816 ESF PTP2001659 | $700,000

BANKERS HILL 2 BR | 2 BA | 1,154 ESF MLS #200050681 | $599,000

CORONA 4 BR | 3 BA | 2,067 ESF ND20237871 | $655,900

DOWNTOWN 2 BR | 2 BA | 902 ESF MLS #200031873 | $669,000

EASTLAKE GREENS 4 BR | 2.5 BA | 1,671 ESF PTP200006 | $568,000-$578,500

EAST VILLAGE 2 BR | 2 BA | 1,101 ESF NDP2001373 | $629,000

EL CAJON 4 BR | 3 BA | 2,305 ESF PTP2001017 | $730,000

EASTLAKE 3 BR | 2 BA | 1,958 ESF PTP2000344 | $620,000

EL CAJON 3 BR | 2 BA | 1,500 ESF PTP2000423 | $725,000

COLDWELL BANKER | WEST

EL CAJON 4 BR | 2.5 BA | 1,982 ESF MLS# 200039561 | $655,500

LA JOLLA 2 BR | 2 BA | 1,192 ESF MLS #200051803 | $710,000

EL CAJON 5 BR | 3 BA | 1,982 ESF MLS #200043143 | $655,000

LAKESIDE 3 BR | 2.5 BA | 1,708 ESF PTP2001245 | $649,000

IMPERIAL BEACH 3 BR | 3 BA | 1,570 ESF MLS #200047697 | $695,000

LAKESIDE 3 BR | 2 BA | 1,496 ESF PTP2000660 | $629,900

LINDA VISTA 3 BR | 2 BA | 1,450 ESF PTP2001487 | $659,900

MIRA MESA 4 BR | 2 BA | 1,576 ESF PTP2000575 | $699,000 - $735,000

LITTLE ITALY 2 BR | 2 BA | 1,267 ESF PTP2001434 | $699,000

MISSION VALLEY 3 BR | 3.5 BA | 1,401 ESF MLS #200045281 | $725,000

LITTLE ITALY 1 BR | 1 BA | 732 ESF PTP2000804 | $625,000

MT. HELIX 3 BR | 2 BA | 1,801 ESF MLS #200051900 | $699,000

COLDWELL BANKER | WEST

MURRIETA 4 BR | 4 BA | 3,446 ESF MLS #200048933 | $595,000

RAMONA 5 BR | 3.5 BA | 3,157 ESF MLS #200050084 | $660,000

NATIONAL CITY 4 BR | 2 BA | 1,374 ESF PTP2001122 | $550,000

SAN DIEGO 3 BR | 2 BA | 1,178 ESF PTP2000172 | $699,900 - $729,900

NORTH HOLLYWOOD 2 BR | 3 BA | 1,181 ESF ND20235838 | $610,000

SAN DIEGO 3 BR | 2 BA | 1,450 ESF PTP2000614 | $699,000 - $749,000

SAN DIEGO 3 BR | 2 BA | 710 ESF MLS #20001939 | $695,000

SAN DIEGO 4 BR | 2 BA | 1,428 ESF PTP2001198 | $569,900

SAN DIEGO 2 BR | 2 BA | 1,164 ESF PTP2001412 | $595,000

SAN DIEGO 3 BR | 2 BA | 1,242 ESF PTP2001398 | $550,000

SAN DIEGO 2 BR | 2 BA | 933 ESF PTP2001007 | $585,000

SPRING VALLEY 3 BR | 3 BA | 2,494 ESF PTP2001413 | $730,000

Homeownership is the Key to Building Wealth For years, real estate has been considered the best investment you can make. A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the 2019 Survey of Consumer Finance Data from the Federal Reserve, for the average homeowner a primary home accounts for 90% of the total wealth of a family in the U.S.

How do homeowners gain wealth?

Most large purchases, like cars and appliances, depreciate in value as they age, so it’s understandable to question how owning a home can increase wealth over time. In a simple equation, the National Association of Realtors (NAR) explains how the combination of paying your mortgage and home price appreciation grow overall wealth: Principal Payments + Price Appreciation Gains = Housing Wealth Gain As home values increase and you make payments toward your home loan, you’ll gain wealth through equity. NAR also addresses how wealth gains tend to play out over time: “Housing wealth accumulation takes time and is built up by paying off the mortgage debt and by price appreciation. And while home prices can fall, home prices tend to recover and go up over the longer term. As of September 2020, the median sales price of existing home sales was $311,800, a 35% gain since July 2006 when prices peaked at $230,000.”

Taking a look at how equity has grown for the typical homeowner, it’s clear to see how real estate is a sound long-term investment.

NAR notes Nationally, a person who purchased a typical home 30 years ago would have typically gained about $283,000 as of the second quarter of 2020 (see graph).

Equity gains as of 2020 Q2 on a typical single-family existing home

$283,022

(purchased 5, 10, 15 or 30 years ago in the U.S.)

$144,490

$130,875

$81,994

5Y Wealth Gain

10Y Wealth Gain

15Y Wealth Gain

30Y Wealth Gain

The calculation shows housing wealth gains accumulated for a typical home purchased 5, 10, 15, or 30 years ago and sold at the median sales price as of 2020 Q2.

The calculation assumes a 30-year fixed-rate mortgage plus points, fees, and a 10% down payment.

The calculation is illustrative of the wealth gain from homeownership. The actual home equity gains accrued over time will vary by property and will depend on home improvements undertaken over time. These home improvements costs are not taken into the calculations.

Bottom Line?

Whether you’re a current homeowner planning to put your equity toward a new home or have hopes of buying your first home soon, homeownership will always be a great opportunity to build your net worth and overall wealth. Owning a home is truly an investment in your financial future.

Source: Homeownership is a Key to Building Wealth. (11/10/2020). Keeping Current Matters. https://www.keepingcurrentmatters.com/2020/11/10/homeownership-is-a-key-to-building-wealth/

COLDWELL BANKER | WEST

BOULEVARD 3 BR | 2 BA | 1,141 ESF #PTP2000520 $375,000

CITY HEIGHTS 1 BR | 1 BA | 540 ESF MLS #200051505 $233,000 - $239,000

CORTEZ HILL 1 BR | 1 BA | 797 ESF MLS #200047740 $399,000

CARMEL VALLEY 2 BR | 2 BA | 864 ESF MLS #200050161 $500,000

CITY HEIGHTS 1 BR | 1 BA | 656 ESF MLS #200050544 $219,000 - $239,000

CORTEZ HILL 1 BR | 1 BA | 672 ESF MLS #200035393 $300,000 - $339,000

CHULA VISTA 3 BR | 2.5 BA | 1,650 ESF PTP2001284 $499,900 - $559,900

CORTEZ HILL 1 BR | 1 BA | 1,014 ESF MLS #200049195 $430,000

EAST VILLAGE 1 BR | 1 BA | 768 ESF MLS #200045691 $439,999

EL CAJON 2 BR | 2 BA | 971 ESF MLS #200031356 $330,000

EL CAJON 1 BR | 1 BA | 710 ESF PTP2001158 $230,000

FASHION VALLEY 2 BR | 2 BA | 1,176 ESF PTP2001216 $449,000 - $469,900

EL CAJON 2 BR | 1 BA | 893 ESF MLS #200051383 $299,000 - $319,000

EL CAJON 2 BR | 2 BA | 1,200 ESF PTP2001340 $85,000

FASHION VALLEY 2 BR | 2 BA | 957 ESF PTP2001180 $349,000

EL CAJON 2 BR | 1 BA | 886 ESF MLS #200049146 $260,000

ESCONDIDO 3 BR | 2 BA | 1,185 ESF PTP2001119 $525,000

HEMET 3 BR | 2 BA | 1,288 ESF MLS #20000618 $240,000

COLDWELL BANKER | WEST

HILLCREST 1 BR | 2 BA | 1,130 ESF MLS #200047104 $500,000

LEMON GROVE 2 BR | 1 BA | 1,004 ESF PTP2001454 $475,000

MISSION VALLEY 2 BR | 2 BA | 1,153 ESF PTP2001470 $459,000

JACUMBA 3 BR | 1 BA | 1,104 ESF PTP2001525 $239,900

LINDA VISTA 2 BR | 1 BA | 716 ESF NDP2002604 $265,000

MISSION VALLEY 1 BR | 1.5 BA | 882 ESF MLS #200039633 $379,999

LA MESA 1 BR | 1.5 BA | 900 ESF PTP2001068 $299,000

MISSION VALLEY 2 BR | 2 BA | 1,256 ESF MLS #200051271 $485,000

NATIONAL CITY 5 BR | 2 BA | 1,515 ESF PTP2001353 $520,000

NATIONAL CITY 4 BR | 2 BA | 1,589 ESF PTP2001278 $500,000

OTAY 3 BR | 1 BA | 1,090 ESF MLS #200050201 $494,995

SAN DIEGO 3 BR | 1 BA | 1,050 ESF PTP2001443 $500,000

NORTH PARK 2 BR | 1 BA | 760 ESF MLS #200051700 $299,900

OTAY RANCH 2 BR | 2.5 BA | 1,192 ESF PTP2001420 $435,800

SAN DIEGO 2 BR | 2 BA | 848 ESF MLS #200048903 $466,900

OAK VIEW 2 BR | 1 BA | 699 ESF V1-2502 $515,000

POINT LOMA 2 BR | 1 BA | 976 ESF NDP2002646 $460,000

SAN DIEGO 2 BR | 2.5 BA | 1,240 ESF PTP2001465 $405,000

COLDWELL BANKER | WEST

SAN DIEGO 1 BR | 1 BA | 877 ESF MLS #200049407 $399,999 - $404,999

SAN DIEGO 1 BR | 1 BA | 627 ESF MLS #200044724 $214,900

SPRING VALLEY 3 BR | 2 BA | 1,107 ESF PTP2001039 $535,000 - $540,000

SAN DIEGO 3 BR | 2 BA | 1,016 ESF PTP2001343 $350,000 - $370,000

SAN DIEGO 3 BR | 2 BA | 1,404 ESF PTP2000828 $199,000

SPRING VALLEY 2 BR | 1 BA | 1,018 ESF PTP2001485 $520,000

SAN DIEGO 1 BR | 1 BA | 582 ESF PTP2000210 $256,500

SANTEE 2 BR | 2 BA | 1,440 ESF PTP2001218 $219,000

SPRING VALLEY 4 BR | 2 BA | 1,323 ESF MLS #200020283 $420,000

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