The Advisor March 2022
Are you sitting on a gold mine? Owning real estate is one of the most financially advantageous things you can do. Over time, the money you put into your home will hopefully be realized into potential gains or leveraged cash. Historically, we expect home values to appreciate year over year, but the current amount of appreciation we have seen is ludacris. Last year on average homes appreciated 14.5% compared to 4% in 2019. In general, if you owned something worth $100,000 and a year later you gained $4,000 just from maintaining that asset, that would be a great thing! Imagine earning $14,500 on the same investment over the same year. How amazing is that?!?! Appreciation or depreciation is motivated by supply and demand. Our current above-average levels of demand and lack of housing options are helping to keep appreciation levels at all-time highs. The other amazing aspect of real estate appreciation is that it is compounding year over year. What that means is if you bought your home for $100,000 last year and then it appreciated 14.5% then your appreciation this year starts from $114,500. Theoretically, if we increase another 10% this year, then your asset would now be worth $125,950. That’s almost $26,000 for each $100,000 in two years! When you can compound any investment over a long(er) period of time it can be one of if not the most profitable gains you see. All for maintaining and owning a place you already need. If you’re not yet a homeowner or looking to purchase a new home, do not be intimidated by the state of the market. We’re helping our clients win by thinking outside of the box and really going to work for them in today’s competitive market. If you own property, this market may be the perfect time to really take advantage of the equity you’ve incurred over the last couple of years. You may be pleasantly surprised at the position you’re in so let’s chat! Let me know if you’d like to explore how much equity is in your home and what we’re doing to help our buyers get into their next dream home!
Free Home Estimate
Clients we represent in search of their next abode:
Western Suburbs Approved up to $1,000,000 Single Family Home
Know of friends or neighbors considering their selling options that
Watertown/Western Suburbs
match one of the criteria below?
Approved up to $500,000
Our clients would greatly appreci-
Single Family Home with acreage /
ate you keeping them in mind.
open to a lot
Northern Minnetonka -
South of the River/ Near Lakeville
Minnetonka School Systems
Approved up to $1,000,000
Approved up to $850,000, or
Single Family Home w/ acreage &
Fixer-Upper under $500,000
land for event use
4 bed + den Minimum, 3,000
Current Market Stats New Listings = -12.1% Pending Sales = -9.1% Median Sales Price = +10.6% % of Original List Price = 99.6% Avg. Days on Market = 41 Days Inventory of Homes For Sale = -20.0% Month Supply of Inventory = .8 Months ***All data provided by the MLS year-over-year comparison through the week ending February 12th, 2022.
RYAN PERTILE TELEPHONE +1 612-805-0059 E-MAIL RYAN.PERTILE@EVREALESTATE.COM ENGEL & VÖLKERS MINNEAPOLIS 1601 HENNEPIN AVE • MINNEAPOLIS • MN 55403