What Does Appreciation Mean in the Real Estate ?

Real Estate

You probably have heard about crazy appreciation gains or maybe that appreciation has predicted to slow down a little bit, or something like that. But what is appreciation and what is its relevance to real estate?

Appreciation means the amount a home increases in value. For instance, for the past 3 to 5 years, there has been an incredible amount of appreciation gains in DFW. Homes have been going up and being valued from 10 to 20 percent higher than previous years, sometimes more, depending on the area. It's just been absolutely crazy!

You may be thinking that since the market has slowed down we will start losing value in homes, and what I see is we will be normalizing our market. Meaning, historically in Dallas we can expect a 3-5% gain in average home values.

So for a $100,000 home, that is about $3,000-5,000 increase in the cost to purchase the home each year.

You may hear people caution you about buying and telling you the market is going to crash and home values will decrease, but history and a very strong economy in Dallas area jobs show that will not be the case.


One thing is absolutely certain, we have been in many crashes since the Dallas area was built, and just 20 years ago you could buy a brand new homes in a great area with beautiful upgrades and closer to Dallas than anything you can buy new now, and the cost was under $200,000! Those same houses will cost you $350,000 or more today..that is $150,000 in your pocket for living somewhere...or 7,500 in your pocket every year and out of a landlords...so if you can’t imagine living somewhere for 20 years, just imagine living somewhere for only 2 years and making an extra $15,000 for paying for somewhere to live...


Thinking about buying? The best time is always as soon as your ready. Contact us today to see what it will take to get ready, put together a plan of action, or even begin the process today!